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Allianz Class Action

Important update: A registration notice is being sent to potential group members by email, text and post in the Allianz Class Action by order of the Supreme Court of Victoria. The notice is being sent by KPMG on behalf of JWS and Maurice Blackburn. If you receive the notice by email or text, it is safe to open the attachment to see the details of the products you purchased.

You must register before 4pm on 15 July 2024 if you want to be eligible to claim money from any settlement before the trial. Register on KPMG’s website: https://www.allianzclassactionregistration.com.au

The trial of the Allianz Class Action will commence on 21 October 2024, with a mediation to be held on 19 August 2024.

Overview

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 and Maurice Blackburn Lawyers are the joint solicitors on the record representing the plaintiffs. The class action was commenced 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.

Registration

Hundreds of thousands of people are eligible to register for the Allianz Class Action.

Register here. 

Register before 4pm on 15 July 2024 if you want to be eligible to claim money from any settlement before the trial. We encourage you to register.

It does not cost you anything to register and you will never have to pay any costs out of your own pocket. You can read more about legal costs in our frequently asked questions. 

If you register:

  • You may be eligible to claim money if there is a settlement before trial.
  • If there is no settlement before trial, then the class action will proceed to trial. If the class action is successful (either at the trial or a subsequent settlement), you may be eligible to claim money from any judgment or settlement.

Once you have registered, you do not need to do anything else at this stage. If a settlement or judgment occurs, you will be contacted in relation to next steps.

More information can be found on the Supreme Court of Victoria website: https://www.supremecourt.vic.gov.au/areas/group-proceedings/allianz.

See Registration Notice. 

Contact KPMG regarding registration for the Allianz Class Action.

Call: 02 9346 6249

Email: allianzclassaction@kpmg.com.au

Registration website: www.allianzclassactionregistration.com.au

Please do not contact JWS or Maurice Blackburn regarding Allianz Class Action registration queries, as you will be directed to contact KPMG.

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 (ASIC Act) and the Corporations Act 2001 (Corporations Act) by Allianz and Allianz Life for engaging in misleading and deceptive conduct and unconscionable conduct;
  • 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; and
  • that Allianz gave personal advice to consumers and breached various obligations under the Corporations Act in relation to the giving of that advice.

Who is eligible?

You are eligible to register in the Allianz Class Action if you received a registration notice from KPMG or you:

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

and 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.

Registering 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

Class Action Updates

  • In September 2021, the Court consolidated the class action being conducted by Johnson Winter Slattery with a similar class action being conducted by Maurice Blackburn. Since then, the two representative plaintiffs in each class action have become joint plaintiffs in a single class action, with Maurice Blackburn and JWS cooperating as joint solicitors.
  • In early September 2022, the Plaintiffs filed an Amended Consolidated Statement of Claim. The Defendants have also filed their Amended Consolidated Defence.
  • On 13 December 2022, the Court made a group costs order (GCO). This is an order that the joint solicitors will receive payment for their fees and expenses, calculated as a percentage of the amount of any award or settlement:
    • the Court ordered that the GCO percentage be 25% (incl. GST). This means that JWS’ and Maurice Blackburn’s legal costs (together) will be calculated as 25% of any award or settlement amount;
    • the Plaintiffs and group members are guaranteed to share 75% of any award or settlement that may be recovered in the proceeding;
    • 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; and
    • further information on the GCO can be found in Frequently Asked Questions (FAQs) section.
  • We have continued to review the defendants’ discovered documents. Discovery is the process where each party must exchange and then review the other party’s documents that are relevant to the class action.
  • On 24 April 2023, the plaintiffs filed the outlines of evidence of the two lead plaintiffs (Tracy-Ann Fuller and Jordan Wilkinson) and another witness, in relation to their dealership experiences and purchases of add-on insurance products. The defendants have filed 5 outlines of evidence.
  • On 1 September 2023 and 8 November 2023, the plaintiffs filed reports from three independent expert witnesses. The defendants have filed three independent expert witness reports.
  • A mediation will be held on 19 August 2024.
  • The trial will commence on 21 October 2024, with closing submissions to be heard in the week commencing 2 December 2024.

Next Steps

  • The parties are working towards preparing for mediation and trial.

Frequently asked questions

1. Who is conducting the Class Action?

Johnson Winter  Slattery (JWS) are the joint solicitors running the class action with Maurice Blackburn.

JWS 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 consolidated with a similar proceeding, which was commenced by Maurice Blackburn against Allianz in the Supreme Court of Victoria, being Jordan Wilkinson v Allianz Australia Insurance Ltd S ECI 2020 04230. On 15 September 2021, the Court ordered that both JWS and Maurice Blackburn act jointly for class action group members against Allianz and Allianz Life. The orders are accessible below.

On 23 September 2022, we filed an Amended Consolidated Statement of Claim on behalf of the plaintiffs and group members, which is accessible below.

On 30 September 2022, Allianz and Allianz Life filed an Amended Defence to the Amended Consolidated Statement of Claim.

On 14 October 2022, the Plaintiffs filed a Reply to the Amended Defence.

2. How is the Class Action being funded?

On 13 December 2022, her Honour Justice Nichols ordered that the legal costs payable to JWS and Maurice Blackburn be calculated as a percentage of the amount of any award or settlement that may be recovered in the proceeding, rather than using time-based billing (group costs order or GCO). A copy of the orders made on 13 December 2022 are accessible below.

The Court ordered that the GCO percentage be 25% inclusive of GST, and any GCO payment is to be shared equally between JWS and Maurice Blackburn. 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 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 of any settlement.

Initially, the First Plaintiff, Ms Tracy-Ann Fuller (Fuller Plaintiff) was provided litigation funding by Balance Legal Capital I UK Ltd (Balance) to pay legal costs the prosecuting the Allianz Class Action. Subsequently, the Fuller Plaintiff elected to enter into an arrangement, and a further retainer with JWS that enabled her to make an application for a GCO (JWS Further Retainer).

The JWS Further Retainer provides that JWS will represent the Fuller Plaintiff in the Allianz Class Action, and will only be paid for its fees and expenses incurred in the Allianz Class Action in the event of settlement or an award of damages in the Plaintiffs’ favour (Successful Outcome).

As part of this arrangement, 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 payable to Balance cannot exceed any amount that is payable to JWS pursuant to the GCO. Balance has no contractual recourse against the Plaintiff or group members for repayment of its Loan with JWS.

Further 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.

3. 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 jointly represent the Plaintiffs in the Allianz Class Action, and will only be paid by the Plaintiffs 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.

The Court has ordered a GCO which means that subject to any further Court order, JWS will be paid its fees and expenses incurred in the Allianz Class Action from any proceeds recovered on the Fuller Plaintiff and group members’ behalf, calculated as a percentage of the amount of any award or settlement. The percentage ordered is 25% inclusive of GST and will be shared between JWS and Maurice Blackburn. The Court has the power to adjust the percentage at any time over the course of the Allianz Class Action, including on a Successful Outcome.

If the Allianz Class Action is unsuccessful, the Plaintiffs and group members will not have to pay any costs to Maurice Blackburn, JWS or the defendants. By reason of the GCO, JWS and Maurice Blackburn are jointly and severally liable for any costs payable to the defendants in the Allianz Class Action.

JWS and Maurice Blackburn are also liable to give any security for costs to the defendants, if required.

4. 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 and, if applicable, any additional interest paid on the finance arising from the financing of the insurance premiums obtained by some group members.  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.

5. 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.

6. What if I do not want to be a group member?

Between February and April 2022, and again in March 2023 the opt out process occurred and the deadline to opt out has now passed.

If you no longer wish to be a group member, you may submit an application to the Supreme Court of Victoria requesting permission to opt out. The request must:

  1. be in writing;
  2. be personally signed by the group member; and
  3. set out adequate reasons why the group member did not file an opt out notice by the deadline and why the group member says that the Court should make an order permitting the group member to opt out.

The Court will review the application and will make a decision.

7. Why did I receive a registration notice from KPMG?

JWS and Maurice Blackburn have engaged KPMG to manage the current registration process. The Supreme Court of Victoria ordered KPMG to send registration notices to potential group members by email, text and post using customer records provided by Allianz. Please read your notice carefully, which includes on page 1 the details of the product/s you purchased.

Register here by 4pm on 15 July 2024.

Further questions?