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Media Release: Add-On Insurance Class Warfare – Self Serving Law Firms Ripping Off Consumers

ADD-ON INSURANCE CLASS WARFARE

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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 shows the cost of add-on insurance on Swann Insurance policies is $3,327 per consumer, however class action members will receive $451 on average meaning they could receive 638% less compensation from the class action.

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 actions did not include interest charges which are charged on top of the policies. These charges often far outweigh the cost of the premiums making the two 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

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