Suncorp has agreed to settle a class action launched four years ago in the Victorian Supreme Court related to add-on insurance sales through car dealerships. 

The litigation action concerned the sale of the add-on products through MTA Insurance, which Suncorp acquired in 2014 and later brought under its AAI subsidiary. 

“While allegations made in the proceedings continue to be denied, an agreement has been reached to settle the proceedings which is subject to court approval,” the company said today. “The agreed settlement will not have any material financial impact on Suncorp.” 

The class action filed by Maurice Blackburn on March 30 2021 alleged the insurer gave personal advice to consumers and breached various obligations in relation to that advice and engaged in conduct that was misleading or deceptive. 

The Australian Securities and Investments Commission had previously taken action against a number of insurers over sales of add-on insurance that it said provided little or no value to consumers. Laws governing sales of the products have since been strengthened. 

Suncorp was ordered to refund $17.2 million, with interest, to 41,428 customers who bought add-on products from MTA under a remediation plan announced by ASIC in 2018. 

The insurer no longer sells add-on cover through motor dealers. 

A Maurice Blackburn spokesperson said the law firm was not yet in a position to comment.