The insurance giant will give $170 million: Reports show that Allianz Insurance could face $170 million in proposed settlement funds because their Australian dealers sold additional insurance to customers. The consumer class action stands as a monumental settlement within Australian history as 200.000 Australians should receive compensation through the arrangement. We will explore everything about this settlement together with its eligibility requirements and the compensation methodologies.
About the settlement
The lawsuit was filed jointly by Maurice Blackburn and Johnson Winter Slattery, alleging that the add-on insurance products sold by Allianz through car dealerships from June 1, 2006 to September 27, 2021 provided little or no value to customers.
These insurance products included:
- Loan Protection Insurance
- Motor Equity Insurance
- Extended Motor Warranty
- Tire and Rim Insurance
The way these products were sold was found to be in violation of the Australian Consumer Law.
Who is eligible?
You may be eligible for compensation if you meet the following criteria:
- Bought a vehicle from a dealership between 1 June 2006 and 27 September 2021.
- Bought one or more add-on insurance products (loan protection insurance, motor equity insurance, extended motor warranty, or tyre and rim insurance) issued by Allianz.
- Paid or incurred a premium for these insurance products.
To qualify for the class action, you must register by 15 July 2024, 4pm. Those who do not register by this date will not be eligible, unless the court makes an exception.
What happens next?
This proposed settlement is subject to court approval, and a hearing is scheduled for 11 March 2025. If the settlement is approved, registered group members will receive their share of the compensation pool, depending on:
- How many premiums they paid for their insurance policies.
- Have they already received a refund or claim payment from Allianz?
Group members
Maurice Blackburn, who is leading the case, is notifying eligible group members via SMS, email and postal notices. If you are a registered member, no action is required of you, unless you want to object to the settlement.
Compensation amount
The compensation amount for each individual is not yet clear. Registered members will receive a share in the settlement pool, but from this:
- 25% of the settlement amount will be deducted for legal fees.
- $5 million will be deducted for plaintiffs and administrative expenses.
This means the amount you receive will depend on how many premiums you paid and whether you have already received a refund or claim.
Key points
The settlement marks a vital achievement for Australian insurance consumers mistreated with undervalue insurance policies. The compensation level has yet to be determined but eligible Australian applicants will obtain payments based on their specific instances.
Stay informed about updates which will follow after the court decides.
ASIC’s findings
ASIC voiced criticism about these add-on policies for several years during its inspection of these policies’ standards. The expenses incurred by customers in this period totalled $1.6 billion for these optional features though they only received $144 million in valid claims payments. This figure represented a minimal proportion of all payments made. Car dealerships received commissions valued at $602 million demonstrating suspicions about the added value of these insurance products to customers.
FAQs On Insurance giant will give $170 million
Q. Do I need to register for this settlement?
A. Yes, you must register by July 15, 2024, otherwise you will not be eligible for the settlement.
Q. When will I receive compensation?
A. Once the settlement is approved by the court, you will be informed of the date of payment of compensation.
Q. Do I need to take any action?
A. If you are registered, no action is required from you, except that you do not object to the settlement.
