Allianz Class Action

If you purchased a car or motorcycle and were sold Allianz or Allianz Life “add-on” insurance products by the dealership, you may be eligible for compensation. These “add-on” insurance products include:

  • Loan Protection Insurance (also referred to as “repayment insurance” or “consumer credit insurance”);
  • 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; and
  • Tyre and Rim Insurance.

Johnson Winter & Slattery has commenced a class action against Allianz and Allianz Life in the Supreme Court of Victoria, alleging various breaches of the Australian Securities and Investments Commission Act 2001 (the ASIC Act) and the Corporations Act 2001 (the Corporations Act) by Allianz and Allianz Life for engaging in misleading or deceptive conduct and unconscionable conduct.

What is the case about?

Allianz Australia Insurance Limited (Allianz) and Allianz Australia Life Insurance Limited (Allianz Life) issued “add-on” insurance products to persons which were presented and sold to them at the time they purchased a motor vehicle (or motor cycle) from a vehicle dealership. These “add-on” insurance products included:

  • Loan Protection Insurance (also referred to as “repayment insurance” or “consumer credit insurance”);
  • 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; and
  • Tyre and Rim Insurance.

The legal proceedings commenced against Allianz and Allianz Life in the Supreme Court of Victoria allege various breaches of the Australian Securities and Investments Commission Act 2001 (the ASIC Act) and the Corporations Act 2001 (the Corporations Act) by Allianz and Allianz Life for engaging in misleading and deceptive conduct and unconscionable conduct.  It is also alleged that certain group members purchased the “add-on” insurance products in circumstances whereby they were mistaken as to certain matters relating to the insurance products as a result of the conduct of Allianz and/or the dealers acting on behalf of Allianz.

Who is eligible?

The class actions covers persons who:

  1. purchased one or more of the “add-on” insurance products referred to above on or around the same time they purchased a motor vehicle or motor cycle from a vehicle dealership;
  2. in conjunction with the purchase were issued with an “add on” insurance product by Allianz or Allianz and Allianz Life;
  3. 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 products.

What does registering on this website mean?

If you meet the above definition, then you are a group member in the Allianz Class Action, and you don’t need to do anything further at this stage.

Registering your details on this website simply means that you are interested in receiving updates about the class action and that you consent to us contacting you.  It does not mean you are obliged to be involved.

In due course, during the case, Group Members will receive notices and other updates regarding the progress of the case.

Registration on this website is not required by any Court order.

Register

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Frequently asked questions

Who is conducting the Class Action and how is it being funded

Johnson Winter & Slattery (JWS) are the solicitors running the class action. The firm has leading-edge experience in advising clients on large-scale litigation and class actions, and its litigation partners have been involved in many of the significant claims and major class actions in Australia over the last 20 years.  JWS has the experience acting for both plaintiffs and defendants in large-scale litigation and class actions related to consumer insurance products, antitrust/competition, corporate, financial services and tax matters.

The Allianz Class Action was initially funded by Balance Legal Capital I UK Ltd (Balance) directly (Balance Funding) and was commenced by Ms Tracy-Ann Fuller, the Representative Plaintiff (Plaintiff) on that basis. The Plaintiff has elected to enter into an arrangement and enter into a further Retainer that will enable her to make an application for a group costs order (JWS Retainer).

While the Balance Funding has not terminated, the terms of the JWS Retainer are now governing the funding of the Allianz Class Action. If there are any changes to the funding arrangements summarised below, including reversion to the Balance Funding, we will notify group members in an updated Funding Information Statement.

The JWS Retainer arrangement provides that JWS will represent the Plaintiff in the Allianz Class Action, and will only be paid by the Plaintiff and Group Members for its fees and expenses incurred in the Allianz Class Action in the event of a (i) settlement of the Allianz Class Action and the recovery of the settlement sum from the defendant(s) or another party or part of them; or (ii) an award of damages in the Plaintiff’s favour in respect of the Allianz Class Action (including any appeal) (Successful Outcome).

A Successful Outcome will not be binding on the Plaintiff and Group Members until it is approved by the Court.  As part of that approval process, the Court will also approve the amount payable to JWS, which will be calculated as explained below.

In order for us to represent the Plaintiff and Group Members in the Allianz Class Action and only to seek payment as ordered by the Court in the event of a Successful Outcome, JWS has been issued with a limited recourse loan by Balance (Loan). This Loan allows JWS to provide the legal services and pay for any expenses over the course of the Allianz Class Action. Balance is not entitled to claim repayment of the Loan from JWS unless there is a Successful Outcome, and any amount paid to Balance will be limited to the amount ordered to be paid to JWS by the Court. Balance has no contractual recourse against the Plaintiff or Group Members for repayment of its Loan with JWS.

More comprehensive details about this funding arrangement can be obtained from the Funding Information Summary Statement and the Class Action Summary Statement.

If there are any further changes to the funding arrangement, Group Members will be notified on this website and also through other means.

What will it cost Group Members to be a part of the Class Action?

There are no upfront costs payable by the Group Members to become part of the class action. This is because JWS will represent the Plaintiff in the Allianz Class Action, and will only be paid by the Plaintiff and Group Members for its fees and expenses incurred in the Allianz Class Action in the event of a Successful Outcome and subject to order of the Court.

If the proceedings are unsuccessful, Group Members will not be liable to pay any of the costs of the proceedings.   JWS will not be required to repay Balance for any amounts drawn under the Loan if there is not a Successful Outcome in the Allianz Class Action.

If there is a Successful Outcome, then subject to Court order, JWS may be paid its fees and expenses incurred in the Allianz Class Action from any proceeds recovered on the Plaintiff and Group Members’ behalf calculated using one of the following methods:

  • calculated using time based billing for professional fees, with expenses (for example, fees for experts and barristers and the costs of taking out insurance to cover payment of any costs order made in the Allianz Class Action) charged at cost; OR
  • the Plaintiff may make an application for JWS as the lawyers running the Allianz Class Action to receive payment for its fees and expenses calculated as a percentage of the amount of any award or settlement. This is known as a group costs order (GCO), where the liability for payment of the percentage is shared among the Plaintiff and all Group Members. The percentage paid under the GCO is determined by the Court and the Court would has the power to adjust the percentage at any time over the course of the Allianz Class Action, including on a Successful Outcome.

What sort of compensation might I receive if the claim is successful?

The legal proceedings seek compensation for Group Members in the form of a refund of the amount paid for the products, or alternatively, a payment which reflects the difference between what Group Members paid for the policy and what it was actually worth. The actual amount of compensation payable will depend on the outcome of the case and the circumstances of individual Group Members, and therefore cannot reliably be predicted.

How long will the action take?

The length of the proceedings is difficult to predict but the litigation is likely to last several years. It is not uncommon for a class action in Australia to last for more than two years.

Further questions?