Victorian Court Approves $34 Million Add-On Insurance Settlement
Victorian Court Approves $34 Million Add-On Insurance Settlement
0
A Victorian court has ratified a $34 million settlement in a class action involving add-on insurance products sold by Suncorp.
This settlement culminates the legal proceedings surrounding alleged unlawful sales practices.
As part of the arrangement, Maurice Blackburn, the law firm representing the plaintiffs, will receive $8.5 million to cover costs and disbursements. Additionally, $1.36 million has been allocated for managing the distribution of settlement funds. The lead plaintiff will obtain $30,000 to compensate for personal time and stress endured during the case.
Justice Patricia Matthews of the Supreme Court of Victoria gave her approval after observing that no objections were raised by group members. Her detailed reasons were released this week, affirming the final settlement decision reached in late June.
The core of the lawsuit rested on the sale of add-on insurance products through MTA Insurance, acquired by Suncorp in 2014. These products, now under the AAI subsidiary, were claimed to hold little to no consumer value, allegedly contravening legal standards in their sale practices.
Despite denying all allegations, Suncorp agreed to the settlement in February, having since ceased selling add-on covers through car dealerships. The decision to settle was based on reducing the time and financial uncertainty that a formal trial would have involved.
Justice Matthews highlighted that a trial was projected to last 12 days, followed by potential lengthy appeals, which would prolong the resolution. By settling, the distribution of funds to plaintiffs is expected within 13-14 months, providing more immediate relief to affected parties.
Published:Friday, 8th Aug 2025 Source: Paige Estritori
A recent ruling mandates an insurance broker to pay nearly $300,000 in compensation to a client after an insurer, QBE, declined a fire claim and cancelled the policy due to nondisclosures. The fire, which occurred in October 2022, severely damaged the commercial premises. QBE asserted that they would have denied coverage had they known about asbestos on the property, among other unreported issues. - read more
An insurance dispute arose when a driver was refused coverage for car damage after evidence showed involvement in multiple collisions, contrary to her claim. Initially, the woman filed a claim with Hollard Insurance, stating her car had collided once with another vehicle. However, the situation took a turn when forensic data from in-car technology revealed two separate impacts occurring 11 minutes apart. - read more
The Australian Securities and Investments Commission (ASIC) has voiced apprehension about the transparency of professional indemnity (PI) insurance amongst holders of the Australian Financial Services Licence (AFSLs). This concern arises from a recent market overview conducted to analyze PI insurance for AFSLs offering personal advice to retail clients. - read more
A savvy traveller has successfully challenged an insurance decision after having to make an impromptu stay in London due to a medical emergency. This came after the man needed urgent medical attention following a cat bite he sustained in Albania, which sent him to the UK capital for essential treatment. - read more
In the age of instant digital services, where everything from basic necessities to luxury items can be delivered in a blink, the life insurance sector in Australia is poised for a transformative change. Historically plagued by lengthy processing times, the sector faces a persistent underinsurance gap, with over a million Australians lacking adequate life protection. The introduction of a digital Personal Medical Attendant Report (PMAR) by Acenda, formerly MLC Life, marks a significant stride towards addressing this challenge. - read more
Landlord insurance is a specialized type of insurance designed to protect property owners who rent out their properties. While standard home insurance covers owner-occupied homes, landlord insurance provides additional coverage for risks associated with tenants. This includes protection against damages to the property, loss of rental income, and liability claims arising from tenant-related incidents. - read more
Landlord insurance is a specialized type of insurance designed to protect property owners from potential risks associated with renting out their property. Unlike standard home insurance, which typically covers owner-occupied residences, landlord insurance offers tailored coverage that addresses the unique challenges faced by landlords. - read more
As an Australian landlord, you may be wondering about the ins and outs of landlord insurance. It's crucial to have a solid understanding of this type of insurance to protect your rental properties properly. Landlord insurance is tailored to cover risks that typical home insurance policies might not handle effectively. - read more
Landlord insurance is a specialized type of insurance designed to protect property owners who rent out their properties. It covers a range of risks that landlords face, including damage to the property, loss of rental income, and liability for injuries that may occur on the premises. - read more
As a property investor, understanding the different types of insurance available is crucial. Whether you're a seasoned landlord or just starting, having the right coverage can safeguard your investment and provide peace of mind. With various options out there, knowing which insurance policies to choose can make all the difference in protecting your assets. - read more
Knowledgebase
Income Insurance: Insures your income in the event of you being unable to work due to sickness or accident.
