(Reuters) – Australia’s corporate regulator opened civil proceedings against a unit within Insurance Australia Group for failing to pass discounts of A$60million ($44.51million) to almost 600,000.

Australian Securities and Investments Commission (ASIC), alleged that Insurance Australia Limited, the insurance arm for IAG (LON) that covers home, motor and landlord policies, had not applied discounts to certain customers when they renewed their motor and home insurance policies.

The ASIC stated that this had an impact on insurance renewals involving 705,000 individual policies.

Following the announcement, the IAG shares fell by almost 4%

These legal proceedings are a result of the industry’s failures, which led to insurance companies repaying over A$400 million in customer debts to more than 2 million people since 2018.

Sarah Court, ASIC Deputy Chair said that ASIC has called on general insurers to provide the discounts customers were promised.

IAG (one of the top national insurers) made an additional statement and acknowledged that ASIC was investigating the case. The company also stated it had reported the problem to ASIC during a review in 2019.

In addition, the general insurance stated that more than 80% were compensated. It also indicated it continued to work with ASIC on the remediation plan.

($1 = 1.3481 Australian dollars)