Car Dealer Add-On Insurance class actions

Maurice Blackburn has filed two class actions relating to add-on insurance products sold through car dealers:

  • The AAI Car Dealer Add-On Insurance Class Action is against AAI Limited and Asteron Life & Superannuation Limited, formerly Suncorp Life & Superannuation Limited (SLSL). The class action was filed on 30 March 2021. It relates to add-on insurance issued by MTA Insurance (MTAI) and/or AAI and/or SLSL.

  • The Allianz Car Dealer Add-On Insurance Class Action is against Allianz Australia Insurance Limited. The class action was filed on 11 November 2020. It relates to add-on insurance offered by Allianz on its own behalf or on behalf of certain other life insurance companies.

Please see below for details and eligibility criteria for these two class actions.

If you would like further information regarding either of the class actions, please contact us at addonclassaction@mauriceblackburn.com.au or on 1800 497 191, or register your interest now.

Maurice Blackburn is no longer investigating other potential class actions in relation to add-on insurance sold through car dealers. If you wish to pursue your own claim, please note that strict time limits apply under Australian law. Please read our FAQ 'Is Maurice Blackburn considering any further class actions against other insurers regarding car dealer add-on insurance?' below for further information.

 

Am I eligible to register?

AAI Car Dealer Add-On Insurance Class Action

You are eligible to register your interest in the AAI Car Dealer Add-On Insurance Class Action if at any time between 1 May 2006 and 30 June 2018:

  1. you purchased or leased a vehicle from a car dealer;
  2. you purchased or leased the vehicle using a loan arranged by the car dealer;
  3. in conjunction with the purchase or lease of the vehicle, you purchased at least one of the following add-on insurance products issued by MTAI and/or AAI and/or SLSL. These products were “branded” with MTAI:
    • Loan Protection Insurance or Commercial Loan Protection Insurance (also referred to as “consumer credit insurance”);
    • Equity or Equity Plus Insurance (also referred to as “guaranteed asset protection insurance”, “GAP insurance”, or “shortfall insurance”);
    • Cash Benefit Insurance;
    • Extended Vehicle Warranty Insurance (also referred to as “extended vehicle warranty”, “mechanical insurance”, “mechanical breakdown insurance”, or “extended manufacturers insurance”); and
    • Tyre and Rim Insurance.

Allianz Car Dealer Add-On Insurance Class Action

You are eligible to register your interest in the Allianz Car Dealer Add-On Insurance Class Action if at any time between 1 June 2006 and 11 November 2020:

  1. you purchased a vehicle from a car dealer;
  2. you purchased the vehicle using a loan arranged by the car dealer; and
  3. your loan provided for payments to Allianz for any of following add-on insurance products, which were offered by Allianz either on its own behalf or on behalf of Allianz Life or OnePath:
    • Loan Protection Insurance (also referred to as “repayment insurance”, “consumer credit insurance” or “CCI”);
    • Motor Equity Insurance (also referred to as “guaranteed asset protection insurance”, “GAP insurance”, “shortfall insurance”, “purchase price insurance” or “value protect insurance”);
    • Extended Motor Warranty (also referred to as “mechanical insurance”, “motor vehicle warranty” or “extended warranty insurance”); and
    • Tyre and Rim Insurance.

You may need to check your documents from the purchase or financing of your vehicle to see if you paid for any of these products. Some add-on insurance products are ‘branded’ with a car or lender name. You should check that Allianz, Allianz Life and/or OnePath was the insurer on your documents.

About the Class Actions

AAI Car Dealer Add-On Insurance Class Action

On 30 March 2021, Maurice Blackburn, on instructions from Mrs Zoey Anderson-Vaughan, commenced a class action against AAI Limited (AAI) and Asteron Life & Superannuation Limited (formerly Suncorp Life & Superannuation Limited) (SLSL) in the Supreme Court of Victoria (case number: 2021 00930). The claim concerns insurance which was sold with, or added onto, loans for the purchase or lease of vehicles at car dealerships.

On 2 August 2021, we filed an amended statement of claim. On 13 August 2021, the defendants filed their defence to the amended statement of claim. We have an opportunity to reply to that defence by 30 August 2021. The case is next listed for a case management conference with the Court on 24 September 2021.

The AAI Car Dealer Add-On Insurance Class Action concerns add-on insurance products issued by MTA Insurance (MTAI), AAI and/or SLSL, and distributed by MTAI through car dealerships.

The claim alleges that:

  1. MTAI, AAI and SLSL gave “personal advice” to consumers and breached various obligations in relation to the giving of that advice;
  2. MTAI, AAI and SLSL engaged in misleading or deceptive conduct and made false or misleading representations; and
  3. The conduct of MTAI, AAI and SLSL wrongly induced consumers to buy the Add-On Insurance, or MTAI, AAI and SLSL knew or should have known that consumers who purchased Add-On Insurance did so under a mistaken belief.

AAI is responsible for the Add-On Insurance contracts issued by MTAI prior to around 1 July 2015. The class action therefore alleges that AAI is liable for MTAI’s contraventions outlined above.   

Allianz Car Dealer Add-On Insurance Class Action

On 11 November 2020, Maurice Blackburn, on instructions from Mr Jordan Wilkinson, commenced a class action against Allianz Australia Insurance Limited (Allianz) in the Supreme Court of Victoria (case number: S ECI 2020 04230). The claim concerns insurance sold to consumers at car dealerships, which was “added on” to consumer loans for the purchase of motor vehicles or motorcycles (vehicles).

The Allianz Car Dealer Add-On Insurance Class Action concerns add-on insurance products offered by Allianz either on its own behalf or on behalf of Allianz Life Insurance Limited (Allianz Life) or OnePath Life Limited (OnePath).

The claim alleges that Allianz:

  1. gave “personal advice” to consumers and breached various obligations in relation to the giving of that advice;
  2. engaged in misleading or deceptive conduct and made false or misleading representations; 
  3. engaged in unconscionable conduct; and
  4. wrongly induced consumers to buy the Add-On Insurance or Allianz knew or should have known that consumers who purchased Add-On Insurance did so under a mistaken belief.

A similar, but different, class action, Tracy-Ann Fuller v Allianz Australia Insurance Limited (ACN 000 122 850) and Anor (No. S ECI 2020 02853) is also being conducted in the Supreme Court of Victoria by Ms Fuller’s lawyers, Johnson Winter & Slattery.

Want to find out more?

Please see below some frequently asked questions.

If you would like further information regarding the Allianz Car Dealer Add-On Insurance Class Action or the AAI Car Dealer Add-On Insurance Class Action, please contact us at addonclassaction@mauriceblackburn.com.au or on 1800 497 191, or register your interest now.

Please bear in mind that our phone lines and inbox may be quite busy with queries during this period. We will endeavour to respond to your calls and emails as soon as we can and thank you for your patience and understanding.

Frequently Asked Questions

Add-on insurance products are general insurance policies that are added on to the sale of a vehicle. They are often paid for by the loan that is taken out to purchase the vehicle.

The more common types of motor vehicle insurance such as comprehensive, third party property, or compulsory third-party insurance are not part of the Allianz Car Dealer Add-On Insurance Class Action or the AAI Car Dealer Add-On Insurance Class Action.

The common types of add-on insurance sold through car dealers are:

  • Loan Protection Insurance (also referred to as “repayment insurance”, “consumer credit insurance” or “CCI”). This insures a borrower’s capacity to make repayments under a car loan, including insurance against sickness, injury, disability, death or unemployment;
  • Motor Equity Insurance (also referred to as “guaranteed asset protection insurance”, “GAP insurance”, “shortfall insurance”, “equity insurance”, “equity plus insurance”, “cash benefit insurance”, “purchase price insurance” or “value protect insurance”). This covers the difference between what a consumer owes on their car loan and any amount they may receive under their comprehensive insurance policy, if the car is a total loss;
  • Loan Termination Insurance. This covers the difference between what a consumer owes on their car loan and the market value of the car if they return it because they cannot make repayments due to illness or injury;
  • Extended Motor Warranty (also referred to as “mechanical insurance”, “motor vehicle warranty” “mechanical breakdown insurance”, “extended manufacturers warranty”, “extended vehicle warranty insurance”, or “extended warranty insurance”). This covers the cost of repairing or replacing parts of the car due to mechanical failure after the manufacturer’s or dealer’s warranty has expired; and
  • Tyre and Rim Insurance. This covers the cost of repairing or replacing damaged tyres and rims from blowouts, punctures or other road damage.

The Australian Securities and Investments Commission (ASIC) has undertaken extensive reviews into this industry. Its reviews suggested that add-on insurance sold through car dealers represents poor value for consumers. 

Where seven or more people have claims that arise out of similar circumstances, a class action can be brought by one claimant on their own behalf and as a representative of others.

The class action process saves time and expense by avoiding the need for the courts to determine common issues of fact or law more than once. Class actions are efficient, enabling disputes and claims involving large numbers of people to be resolved via a single case.

Registering your interest in the Allianz Car Dealer Add-On Insurance Class Action or the AAI Car Dealer Add-On Insurance Class Action will not expose you to any out of pocket costs. All costs in the Allianz Car Dealer Add-On Insurance Class Action and the AAI Car Dealer Add-On Insurance Class Action will be borne by Maurice Blackburn unless and until there is a successful outcome.

In the event of a successful outcome in the Allianz Car Dealer Add-On Insurance Class Action or the AAI Car Dealer Add-On Insurance Class Action, any costs payable by Maurice Blackburn will be deducted from, and will not exceed, any compensation that you are entitled to receive. All such costs are required to be considered and approved by the Court.

Nothing.

As a member of the class (and not the Representative, in whose name the case has been brought) in the Allianz Car Dealer Add-On Insurance Class Action or the AAI Car Dealer Add-On Insurance Class Action, an adverse costs order may not be made directly against you in respect of the determination of the common issues in the class actions. Unless and until there is a successful outcome, all costs will be borne by Maurice Blackburn.

Registering in the Allianz Car Dealer Add-On Insurance Class Action or the AAI Car Dealer Add-On Insurance Class Action is an expression of interest only. If you register, it means that we can provide you with key updates about the class actions. It does not mean that you will be entitled to compensation.

Registering is not required for the Allianz Car Dealer Add-On Insurance Class Action or the AAI Car Dealer Add-On Insurance Class Action.

No, Maurice Blackburn is not considering any further class actions in relation to add-on insurance products sold through car dealers.

Maurice Blackburn was investigating potential class actions against a number of insurers regarding add-on insurance products sold through car dealers, however that investigation is now closed.

If you wish to pursue your own claim in relation to your add-on insurance product, you should be aware that strict time limits apply. The application of these limitation periods can be complex but in essence the rule is that if you do not make a claim in a court within 6 years of the date you paid for the insurance product you are barred from making a claim. While you may have a claim beyond the 6 year period for causes of action in mistake or fraudulent concealment, we cannot give you any advice on these causes. If you are concerned that a time limit is soon to expire or may have already expired we recommend that you consider obtaining legal advice from another lawyer.

You can consider pursuing a refund through the Demand A Refund campaign. We cannot assist you in pursuing this option.

No, you cannot register if you think you have an add-on insurance product issued by either of these insurers, because class actions against these insurers have settled. Instead you should contact the respective law firms who conducted those class actions. We cannot comment on your eligibility for those class actions and settlements:

  • class action against Swann Insurance, conducted by the law firm Johnson, Winter & Slattery; and
  • class action against Davantage Group Pty Ltd trading as National Warranty Company, conducted by the law firm Baker McKenzie.

Maurice Blackburn's class action
record is second to none.

$100m+

We are the only Australian class actions firm to deliver $100M+ settlements to clients in shareholder and listed securities actions, and have done so on seven occasions.

$3bn

We've recovered in excess of $3 billion for wronged clients since the inception of our class actions practice in 1998.

Listed securities class actions
Class Action Infographic

Australian leaders.

Our reputation for excellence in class actions is unparalleled, increasing our chances of:

Better returns

Faster recovery

Lower cost to clients

Andrew Watson

National Head of Class Actions, Melbourne

"I'm an experienced litigator in class actions, particularly for shareholders who have been victims of corporate misconduct."

It doesn’t cost you anything to know where you stand

Can we help?
back
Find an office near you
Your local office

Let us contact you

It doesn’t cost you anything to know where you stand

We take calls 24/7

Call us now
1800 305 568

Free Call

Find an office near you
Your local office

Let us contact you