$170M Allianz Settlement: Who’s Eligible and How to Check Your Status

You Could Be Entitled to Allianz’s $170M Settlement — Here’s How to Check!

A landmark improvement inside the law for Australian clients is the year 2025. Allianz Australia Insurance Ltd. and Allianz Australia Life Insurance Ltd. have entered into an agreement to settle an ability magnificence movement lawsuit amounting to $170 million concerning the sale of automobile dealership add-on insurance merchandise. Enduring approval by means of the court, this agreement will benefit around 200,000 of those who acquired specific coverage products between June 1, 2006, and September 27, 2021.

Background to the Allianz Class Action

Maurice Blackburn and Johnson Winter Slattery filed the class action. The case alleged that Allianz and its subsidiaries had acted unconscionably and engaged in misleading behavior and thereby violated the Australian Securities and Investments Commission Act 2001 and the Corporations Act 2001. They promote add-on coverage merchandise, most of which no longer benefits the customer.

Questionable Add-On Insurance Products

The policies of the subject involved in the current class action are

• Loan Protection Insurance: Also known as repayment insurance or purchaser credit insurance, it’s designed to pay loan payments in specific situations.
• Motor Equity Insurance: Also referred to as guaranteed asset protection (GAP) insurance, designed to cover the shortfall between the price of a car and the stability it still takes to purchase it.
• Extended Motor Warranty: Coverage that extends the duration of the warranty of a car past that given by the manufacturer.
• Tire and Rim Insurance: Insurance for damage to the edges and tires of the automobile.

These were usually offered with car purchases and frequently packaged into the financing deals, frequently with no apparent disclosure of terms or requirements.

Eligibility Criteria for Compensation

To qualify to be paid from the proposed settlement, one must fulfill the following criteria:

1. Purchase Date: An automobile or bike was sold from a dealership between June 1, 2006, and September 27, 2021.
2. Insurance Policies: Obtained one or more of the subsequent add-on insurance guidelines underwritten by way of Allianz or its affiliates during the purchase of the car.
3. Financial Responsibility: Paid or became responsible to pay premiums for said insurance products.
4. Registration: Registered in the class action by 4:00 PM AEST on July 15, 2024.

It must be added that registration within the time frame was a condition precedent to qualification. Those who did not register within this timeframe are usually not qualified for compensation unless the court makes an explicit order to bring them in.

Compensation Details

The compensation for settlement varies from $80 to over $4,000, and the average total payment is estimated at about $585. The actual figure to be received by each of the individuals affected differs based on various factors, including

• The particular insurance products bought.
• The charges levied on these goods.
• Any past claims or refunds under these policies.

The refund is to reimburse consumers for premiums paid on insurance products that had the potential of being of questionable value or being sold on unfair terms.

Court Approval Process

The settlement is pending approval by the Supreme Court of Victoria. The court set March 11, 2025, as the date for hearing whether the suggested settlement is just and reasonable. The ruling by the court will decide whether the settlement goes through and compensation is issued to entitled claimants.

Registered Claimants’ Next Steps

For those who have registered up to 15 July 2024, nothing else needs to be done now. Maurice Blackburn, one of the firms of lawyers working on the case, will write to registered group members with further details when the court has ruled. This notice will give details of:

• Verification of eligibility.
• The level of remuneration to be obtained.
• Payment processing and schedule of payment disbursement.

Enrolled members are also notified to keep contact details current so they are easier to reach for notifications and to check for communication with Maurice Blackburn.

Implications for Non-Registered Individuals

People who missed the deadline to join the class action typically cannot be paid under the settlement as described. The court can, in its discretion, make orders to allow further people to be covered by the settlement. People who think they might be covered but did not join should consult a lawyer to discuss any possible way they can be covered.

Broader Impact of the Settlement

This class action and the proposed settlement that follows put in sharp focus serious concerns with the auto sales and insurance business, particularly with regard to the selling of add-on insurance products. The case highlights the importance of disclosure and informed consent in financial transactions and could trigger more regulatory scrutiny and consumer-protective reforms in the future.

Conclusion

The suggested $170 million agreement between Allianz and affected consumers is the biggest news in Australian consumer protection law. Registered consumers who applied before the July 15, 2024, deadline are eligible for compensation on add-on insurance products that may have been mis-sold. Registered claimants are advised to wait until more guidance from Maurice Blackburn on the next step in the compensation process is released, as the court decision is still pending. For more information and updates on the settlement, individuals can visit the official Allianz Class Action website or consult with legal professionals. These legal professionals handle consumer rights and class action cases.

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