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 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. - read more
Recent research from Victoria University has provided new insights supporting the proposal to abolish insurance taxes in Australia. The study, conducted by Jason Nassios and James Giesecke, examined the effects of varying rates on four primary taxes: personal income tax, goods and services tax (GST), stamp duties, and insurance duties. Unlike previous studies, this research assessed the economic impacts of these taxes as their rates fluctuated, rather than analyzing them at static levels. - read more
A recent decision in an Australian Financial Complaints Authority (AFCA) case has ruled in favour of a business seeking coverage for damage to machinery, despite the hiring company not adhering to all prescribed safety guidelines. The matter involved a Winlet 575 Glass Robot that sustained damage when its stabiliser failed during operation. - read more
In a notable victory, Brisbane-based IVAA Claims emerged as the winner of the esteemed Beyond the Buzzwords pitch contest. The company, which specializes in jewellery validation assessments and settlement guidance for contents claims, impressed the judges with its innovative approach to tackling insurance fraud. - read more
The Council of Australian Life Insurers (CALI) has highlighted a significant gap in access to affordable, professional life insurance advice among young Australians. A recent study conducted by CALI reveals that only 11% of 18-to-34-year-olds obtain formal financial guidance, with the majority relying instead on advice from informal and often inaccurate sources such as friends, family, social media, and online forums. - read more
Being prepared when it comes to life insurance claims can make a world of difference. Proper preparation helps you prevent delays and denials, ensuring that your loved ones receive the financial support promised by your policy without unnecessary hold-ups. By paying attention to the details, you can streamline the claims process, giving you and your family peace of mind during what is already a stressful time. - read more
The digital age has fundamentally transformed how we approach almost every aspect of our lives, including the way we shop for life insurance in Australia. Gone are the days when one had to schedule meetings with insurance agents or flip through pamphlets to understand life insurance policies. Today, obtaining life insurance quotes online has become the norm, offering a hassle-free and incredibly accessible platform for individuals to safeguard their financial future. - read more
Life insurance is a cornerstone of financial planning for Aussie families, offering protection and peace of mind. But what happens when the bustling flow of life brings changes? This is where a life insurance review comes into play. A life insurance review is a thorough analysis of your existing policy to ensure it aligns with your current life circumstances and financial goals. - read more
Choosing the right life insurance policy is one of the most important decisions for Australians, especially for those who are middle-aged or older. Life insurance provides financial security for your loved ones in the event of your passing, ensuring that they are not burdened with financial hardships. - read more
The financial fabric of our lives consists of both planning and safeguarding against the unforeseen. Trauma cover, a lesser-known but crucial aspect of personal insurance, provides this protection by offering a lump sum payment upon diagnosis of specific serious illnesses or injuries. In the tapestry of financial planning, it acts as a vital safety net, ensuring that unexpected health crises do not lead to monetary distress. - read more
Start Here !
Apply now for your free Insurance assessment and price comparisons!
All quotes are provided free and without obligation. We respect your privacy.
Knowledgebase
Replacement Cost: The amount it would cost to replace or rebuild an insured asset with one of similar kind and quality, without depreciation.
