How we forced Allianz to finally pay Manuel Larriera $1.8 million in car-crash compensation

EXCLUSIVE: Manuel Larriera was critically injured when a vehicle crossed onto wrong side of the road and collided head-on with his car. Now, after pressure from the Daily Telegraph, the insurer paid up.

INSURANCE giant Allianz last night caved to pressure from The Daily Telegraph and agreed to pay western Sydney man Manuel Larriera more than $1.8 million in car-crash compensation.

The extraordinary backdown came as The Telegraph was preparing to reveal Allianz was heading to the Court of Appeal having already lost a Supreme Court challenge it should not have filed in the first place.

The story was to say the only way Allianz would drop the new legal action was if Mr Larriera accepted $600,000 less, which he had no intention of doing.

Manuel Larriera in 2012 after he was hit in a car accident.

And it would disclose the company was facing intense heat from the minister who oversees the NSW Compulsory Third Party insurance system, Victor Dominello, as well as the regulator. They were urging Allianz to pay up, but had no power to make the company do so.

When asked to explain its behaviour yesterday morning, an Allianz spokesman said it was important for the affordability of CTP cover that the compensation was “fair and correct”.

Then, at 4.57pm, the spokesman emailed Public Defender to add: “Upon further review, Allianz has determined that it would be inappropriate for Mr Larriera to be disadvantaged by an error in legal process. Allianz has therefore resolved to withdraw the appeal and make prompt payment in full.”

He would not say what triggered the dramatic change of attitude.

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Manuel Larriera's car after it was hit head-on in 2012. Picture: Supplied

When told of the news, Mr Larriera said: “You are seriously changing my life. Thank you.”

Mr Larriera and his wife Melinda — pictured before learning of the win — have been battling the company since 2012. In May that year he was driving in south-western Sydney when an oncoming vehicle travelling at 100km/h crossed onto wrong side of the road and collided head-on with his car. Allianz was the insurer of the other vehicle.

Last year an independent assessor found he should get $1.8 million for injuries — a decision an insurer is not meant to challenge.

But Allianz used a loophole to file a judicial review in the Supreme Court, arguing the amount payable for loss of past and future earnings was not justified. In April it lost. Then a month ago it filed in the Court of Appeal.

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Manuel Larriera and wife Melinda stared down Allianz’s attempts to delay paying — or reduce the size of — a damages assessment. Picture: Melvyn Knipe

That led the Larrieras to turn to the media and launch a change.org petition that attracted 8000 signatures.

Meanwhile, Mr Dominello is in the middle of overhauling the CTP system. There are some concerns that this could place more power in the hands of insurers. However, the minister’s spokesman said the revamp was aimed at increasing fairness and affordability.

“The reforms will see the majority of injured road users have access to benefits much faster,” the spokesman said.

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