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Allianz Class Action

Important Update

The deadline to register to participate in any pre-trial settlement has passed (the deadline was 4pm on 15 July 2024 (AEST)).

What’s next?

  • The mediation will occur on 19 August 2024.
  • The trial will commence on 23 October 2024 in the Supreme Court of Victoria. Group members are not expected to participate in the trial.
  • If you have registered, there is nothing further you need to do at this time, and we will contact you if there is a significant update such as a settlement or trial judgment.
  • If you have registered and would like to update your contact details, please email allianzclassaction@jws.com.au.

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.

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 may be a Group Member if, at any time between 1 June 2006 and 27 September 2021 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.

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 23 October 2024, with closing submissions commencing on 4 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 engaged KPMG to manage the 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.

The deadline to register to participate in any pre-trial settlement has passed (the deadline was 4pm on 15 July 2024 (AEST)).

8. What does registering my interest in the class action mean?

The deadline to register to participate in any pre-trial settlement has now passed (the deadline was 4pm on 15 July 2024 (AEST)).

Further questions?