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AAP
AAP
National
Miklos Bolza

Zurich unit rejected claim in 'bad faith'

ANZ ASIC Insurance Zurich
The case is the first to seek penalties over an insurer's failure to act with "utmost good faith". (James Ross/AAP PHOTOS) (AAP)

An insurer owned by Zurich is accused of simply rejecting a claim as "fraudulent" without properly investigating the customer or informing her about her right to appeal.

The Federal Court lawsuit against OnePath, filed by the Australian Securities and Investments Commission on Wednesday, is the first to seek financial penalties over a firm's alleged failure to act with "utmost good faith" when handling a claim.

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