- On 13 December 2022, the Court made a group costs order (GCO). The GCO means that the plaintiffs’ lawyers’ costs are to be calculated as 25% (incl. GST) of any final settlement or damages amount, as opposed to using time-based billing. For more information about the GCO and costs in general, see the FAQs below.
- We are currently in the process of discovery, which is when each party provides relevant documents to the other party.
- The Court has made orders regarding the filing of evidence, which will occur throughout 2023.
- At this stage, there is no trial date set.
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 27 September 2021, you:
- purchased a motor vehicle or motor cycle (vehicle) from a vehicle dealership;
- purchased one or more of the following add-on insurance products issued by Allianz, or Allianz and Allianz Life, or offered by Allianz on behalf of OnePath Life Limited at or around the time you purchased the vehicle from the vehicle dealership:
- 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”); or
- Tyre and Rim Insurance;
- became liable to pay or paid (directly or indirectly), a premium to either of Allianz, or Allianz and Allianz Life for the add-on insurance product(s).
If you purchased or financed a vehicle during this period, check your documents to see if you paid for any of the above products. Some add-on insurance products are ‘branded’ with a car or lender name, so you should check whether Allianz, Allianz Life and/or OnePath was the insurer.
Registering your interest does not mean that you are eligible for the class action or for compensation. Group member eligibility will be determined at a later stage. View the full group member definition in paragraph 9 of the Amended Consolidated Statement of Claim.
About the Class Action
The joint lead plaintiffs in the class action are Tracy-Ann Fuller and Jordan Wilkinson. The class action alleges that Allianz by itself, or by dealers for whom Allianz was responsible:
- gave “personal advice” to consumers and breached various obligations in relation to the giving of that advice;
- engaged in misleading or deceptive conduct and made false or misleading representations;
- engaged in unconscionable conduct; and
- 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.
The lead plaintiffs seek a number of types of relief on behalf of themselves and group members, including damages to compensate each group member and/or recovery of the amount of the premiums mistakenly paid.
Want to find out more?
Please see below some frequently asked questions and key documents.
If you would like further information regarding the Allianz Car Dealer Add-On Insurance Class Action, please contact us at firstname.lastname@example.org or on 1800 497 191, or register your interest now.
We will respond to your calls and emails as soon as we can. 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.
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 (some product types had slight differences);
- 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 will not expose you to any out of pocket costs. All costs in the Allianz Car Dealer Add-On Insurance Class Action will be borne by Maurice Blackburn and JWS (or their litigation funder) 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, Maurice Blackburn and JWS’s legal costs (together) will be calculated as 25% of any award or settlement amount. Therefore, the plaintiffs and all group members are guaranteed to share 75% of any award or settlement that may be recovered in the proceeding.
The GCO percentage can be adjusted by the Court at any time over the course of the class action, including and up to the conclusion of the trial or any settlement.
More information regarding costs in the proceeding is in the ‘Funding Information Summary Statement’ below.
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, you will not be liable to pay any ‘out of pocket’ costs, whether or not the case is successful.
All costs in the Allianz Car Dealer Add-On Insurance Class Action will be borne by Maurice Blackburn and JWS (or their litigation funder) unless and until there is a successful outcome.
Registering your interest in the Allianz Car Dealer Add-On Insurance Class Action is an expression of interest only. If you register your interest, it means that we can provide you with key updates about the class action. It does not mean that you are a group member or that you will be entitled to compensation. Group member eligibility will be determined at a later stage.
Registering your interest is not required.
A GCO is a Court order that the plaintiffs’ lawyers’ costs are to be calculated as a percentage of any final settlement or damages amount, as opposed to using time-based billing. On 13 December 2022, the Court ordered that:
- the GCO percentage be 25% (incl. GST). This means that Maurice Blackburn’s and JWS’ legal costs (together) will be calculated as 25% of any award or settlement amount. Therefore, the Plaintiffs and all group members are guaranteed to share 75% of any award or settlement that may be recovered in the proceeding;
- the GCO payment is to be shared equally between JWS and Maurice Blackburn;
- the GCO percentage is ‘subject to further order’. The Court can adjust the GCO percentage at any time over the course of the class action, including and up to the conclusion of the trial or any settlement
More information regarding the GCO and costs in general is in the Funding Information Summary Statement.
On 11 November 2020, Maurice Blackburn, on instructions from lead plaintiff Jordan Wilkinson, commenced a class action against Allianz in the Supreme Court of Victoria.
JWS was also conducting a similar, but different, class action against Allianz and Allianz Life on behalf of lead plaintiff, Tracy-Ann Fuller.
On 15 September 2021, the Court consolidated the two class actions into a single proceeding against Allianz and Allianz Life (case number: S ECI 2020 02853), with the effect that:
- Ms Fuller and Mr Wilkinson are now the joint lead plaintiffs;
- JWS and Maurice Blackburn are jointly named as solicitors on the record for the lead plaintiffs and will work together to jointly conduct the class action.
For information about the AAI Car Dealer Add-On Insurance Class Action (regarding MTAI, AAI or SLSL products), please click here.
Otherwise, Maurice Blackburn is not considering any further class actions in relation to add-on insurance products sold through car dealers.
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