Allianz’s Massive $170 Million Settlement: In one of Australia’s most significant consumer protection milestones, Allianz has agreed to a landmark $170 million settlement to resolve a class action lawsuit involving the sale of add-on insurance policies. These policies were widely criticized for being poor value, misrepresented, or in some cases, entirely unnecessary. The case potentially affects over 200,000 Australians, many of whom may not even realize they were impacted.
If you’ve ever purchased a vehicle through a dealership and were offered optional insurance as part of the financing package, this could apply to you. This article offers a complete breakdown of who is eligible, how to confirm your status, and what to expect next. Whether you’re a consumer just learning about this or a legal or financial professional helping clients, this guide has you covered.
Allianz’s Massive $170 Million Settlement
| Topic | Details |
|---|---|
| Settlement Amount | $170 million AUD |
| Eligible Period | 1 June 2006 – 27 September 2021 |
| Insurance Types | Loan Protection, GAP, Extended Warranty, Tyre & Rim |
| Estimated Affected | Over 200,000 Australians |
| Registration Deadline | 15 July 2024 (now closed) |
| Next Court Date | 11 March 2025 |
| Law Firm Handling | Maurice Blackburn Lawyers |
If you financed a vehicle between 2006 and 2021 and were sold add-on insurance products by Allianz, this $170 million class action could affect you. While the registration window has now closed, those who submitted their interest are one step closer to potential compensation.
This case underscores the importance of knowing what financial products you’re paying for—and questioning offers that seem vague or unnecessary. Stay up to date via the Maurice Blackburn settlement page and monitor court developments in early 2025.
What Was the Allianz Class Action About?
The class action alleged that Allianz Australia Insurance Limited and Allianz Australia Life Insurance Limited engaged in misleading or deceptive conduct in the way they marketed and sold certain insurance products. These were add-on insurance policies, usually offered when customers were purchasing vehicles through dealerships.
The central complaint was that these policies:
- Delivered little or no benefit to customers,
- Were added without adequate explanation or consent,
- Were sold using high-pressure tactics,
- Were not tailored to individual needs or situations,
- Included terms that excluded common claims, effectively rendering the insurance useless for many buyers.
This practice was especially damaging to vulnerable consumers, including those with limited financial literacy or English as a second language.
Types of Add-On Insurance Products Involved
Understanding the specific types of insurance involved can help you recognize if you were affected. Here’s an in-depth look:
1. Loan Protection Insurance (Consumer Credit Insurance)
This insurance was supposed to help repay your loan if you became unemployed, sick, injured, or passed away. However, many people who were sold this policy did not meet the eligibility criteria—for example, they were casual workers, unemployed, or had pre-existing medical conditions.
2. Motor Equity Insurance (GAP Insurance)
This policy covered the “gap” between your car’s market value and the balance left on your loan if your car was written off. Despite sounding useful, it was often redundant or extremely limited due to fine print exclusions and was frequently misrepresented.
3. Extended Warranty Insurance
This policy extended the vehicle warranty after the manufacturer’s warranty expired. However, most consumers didn’t know that Australian Consumer Law already offers protection for defective products, making this insurance largely unnecessary.
4. Tyre and Rim Insurance
Intended to cover damage to tyres and wheels due to road hazards, this product was frequently underutilized or failed to offer meaningful compensation. The cost of the policy often exceeded the potential benefits.
Who Is Eligible for a Allianz’s Massive $170 Million Settlement Payout?
You might be eligible for compensation under the settlement if:
- You purchased a car, motorbike, or vehicle from a participating dealership between June 1, 2006 and September 27, 2021, and
- You were sold one or more Allianz-issued add-on insurance products at the time of purchase, and
- You either paid the premium yourself or it was included in your loan repayment.
Even if you were unaware that these were optional or never fully understood what you were paying for, you may qualify.
Important: Registration Period Has Ended
The deadline to register your interest was 15 July 2024 at 4:00 PM AEST. If you met this deadline, no further action is needed until the court rules on the settlement. If you missed the cutoff, you are unlikely to receive compensation unless the Court grants you special permission.
What Happens Next?
The class action settlement must still be approved by the Supreme Court of Victoria, which will examine whether the deal is fair, reasonable, and in the interests of group members.
Key Court Milestone:
- Court Hearing Date: 11 March 2025 at 10:00 AM AEDT
- Location: Supreme Court of Victoria, Melbourne
If the court approves the settlement:
- Registered claimants will be contacted to verify details and assess entitlements.
- The amount you receive depends on:
- The premium you paid,
- Whether you made a successful claim,
- Any prior refunds or benefits already received.
How to Check If You’re Affected (Even If You’re Unsure)
It’s common for buyers to forget they even purchased add-on insurance, as it was often bundled into the vehicle finance paperwork. Here’s how to double-check:
- Review your purchase documents from any vehicle bought between June 2006 and September 2021.
- Look for policy names such as:
- Loan Protection Insurance
- GAP or Value Protect Insurance
- Extended Warranty or Mechanical Breakdown Insurance
- Tyre and Rim Insurance
- If unsure, contact Allianz or your dealership to request a policy summary.
You can also check your loan contract and ask your financial institution if they remitted a portion of your loan to Allianz.
Why This Case Matters for Every Australian Consumer
This settlement is more than just a compensation case. It represents a turning point in how financial products are regulated and sold in Australia.
The Australian Securities and Investments Commission (ASIC) has long flagged the add-on insurance industry as problematic. In a 2019 release, ASIC forced Allianz to refund $45.6 million to customers who were sold what was widely dubbed as “junk insurance” (ASIC Media Release).
The Allianz case demonstrates the need for more transparent practices and better consumer education. It also reinforces the value of class actions in holding large corporations accountable for unethical behavior.
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FAQs About Allianz’s Massive $170 Million Settlement
1. How do I know if I bought Allianz add-on insurance?
Carefully examine your vehicle purchase documents and finance agreements. If you see any mention of Allianz or the names of the insurance policies listed above, you likely bought one.
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2. I don’t remember agreeing to insurance—what should I do?
You’re not alone. Many consumers were unaware these policies were included. Contact the dealership or Allianz to retrieve a copy of your insurance documents.
3. Will everyone receive the same payout?
No. Compensation will vary depending on individual circumstances, such as the type and duration of the insurance and whether any claims or refunds were made.
4. Can I still benefit if I missed the registration deadline?
In most cases, no. However, the Court may consider late registrations under exceptional circumstances. Stay informed through Maurice Blackburn’s website.
5. Is legal advice necessary?
Not necessarily. Maurice Blackburn is handling the case for all registered members. However, if you’re unsure about your specific situation or want to explore other legal avenues, independent legal advice could be useful.
6. Do I have to attend the court hearing?
No. Claimants are not required to attend. Maurice Blackburn will represent all registered members in court.
