Media Release: Add-On Insurance Class Warfare – Self Serving Law Firms Ripping Off Consumers
Wednesday, 3 February 2021
FOR IMMEDIATE RELEASE: Claimo has launched a corporate war against law firms urgently calling for Treasurer Josh Frydenberg MP to intervene and use special emergency powers to further regulate national firms like Slater and Gordon and Johnson Winter & Slattery dealing with add-on insurance class actions. The damning submission was provided in response to new legislation creating a licensing requirement for claimant intermediaries.
Recently settled add-on insurance class actions show self-serving law firms are putting profits before consumers best interests after group members of the Swann Insurance class action could receive just 9 cents in the dollar. IAG’s senior counsel estimated the charges as $1 Billion but members will receive a puny $90,147 million after legal fees.
Add-on insurance class actions take years to settle and consumers are unaware they can claim significantly more compensation by opting-out of the proceedings and pursuing a full refund of premiums and interest charges through the banks free dispute resolution channels, in a much quicker timeframe.
Claimo customer data consistently shows that Claimo helped policy holders recover not only the entire amount of premiums paid to Swann Insurance, but also an additional amount representing compensation by way of interest. In contrast, evidence suggests that registered members of the Swann Insurance class action received considerably less than the amount of their premiums. Unregistered members received nothing from the class action settlement.
Out of the 350,000 NAB customers who were group members of the NAB CCI Class Action, only 45,000 registered for compensation and 87% did not receive anything from the settlement.
“We have had to turn away many NAB customers who were unaware of the proceedings and did not register for compensation in time. These consumers are now bound by the outcome and cannot pursue any further compensation” said Claimo’s Founder, Nathan Mortlock.
“The NAB and Swann Insurance class action settlements did not provide adequate compensation for the premiums and interest incurred by group members. In many cases, the interest charges alone exceeded the cost of the premiums making the class action settlements a terribly unfair outcome for consumers,” Nathan added.
Claimo urgently encourages consumers to research and decide whether they want to remain or opt-out of the add-on insurance class actions because strict timeframes apply.
Media Contact
Elita Gluscevic
elita@claimo.com.au
###
