Class Action Lawsuit Filed Against Insurance Giant for ‘Loyalty Tax’
A recent class action lawsuit has been filed against Insurance Australia Limited (IAL) over an alleged “loyalty tax” on policies, affecting millions of Australians. The law firm Slater and Gordon lodged the claim in the Victorian Supreme Court, accusing IAL of engaging in misleading and deceptive conduct.
In response, IAL’s parent company, Insurance Australia Group (IAG), has stated that they will defend against the class action lawsuit. They maintain that they have fulfilled loyalty offers to customers and deny misleading them about the discounts they were entitled to receive.
The lawsuit specifically pertains to the renewals of NRMA home and/or contents insurance policies under the ‘Get your insurance back’ campaign. It alleges that IAL, a subsidiary of IAG, engaged in “unconscionable conduct” by not disclosing a hidden “loyalty tax” within the premium while promoting loyalty discounts to customers.
Slater and Gordon, the legal team behind the class action suit, will argue that IAL’s behavior breaches the ASIC act. The lawsuit is being pursued on a no win, no fee basis, ensuring that participants will not face any costs. Additionally, Slater and Gordon plan to seek a group costs order for the lawsuit.
For those following the developments closely, the case highlights the importance of transparency and fair practices in the insurance industry. Stay tuned for updates as this legal battle unfolds.
