Maurice Blackburn class action against MTA insurance: See if you are eligible

Hundreds of thousands of Aussies are eligible to join a class action launched over an add-on insurance scheme at car dealerships. See if you are eligible.

Hundreds of thousands of Australians have a few months left to join a class action against a major insurer who sold “add-on” car policies, which delivered little or no value, for almost a decade.

Maurice Blackburn filed the class action against Suncorp in 2021 at the Supreme Court of Victoria, accusing its subsidiary MTA of using “misleading or deceptive conduct” to sell add-on insurance products at car dealerships.

Suncorp had already been forced to pay in refunds and costs $17.2m for the sale of the insurance after regulatory action in 2018.

These insurance products were the target of scrutiny in the Hayne royal commission, which revealed Allianz had sold more than two million insurance policies that contained false and misleading statements.

WHAT IS MTA INSURANCE?

MTA insurance is a retail motor insurance product which is usually offered as an “add-on” to a car insurance policy sold by car dealerships.

These add-ons were commonly labelled as Equity Plus Insurance and Loan Protection Insurance.

ASIC investigated and found these policies illegitimate, which resulted in a class action against dealerships.

The regulator also found many customers were often sold policies on a far more expensive level than was needed and did not receive rebates from MTA when they paid out loans early, even though cover under these policies had ended.

It led to Maurice Blackburn launching class actions involving junk insurance purchased via dealerships.

In its statement, Suncorp said: “Suncorp disputes the allegations made, and the matter is being defended. Since the matter is before the Court, Suncorp cannot comment any further at this time.”

MTA is a subsidiary of Suncorp. Picture: Richard Gosling

WHAT DOES THE CLASS ACTION ALLEGE?

The class action is about “MTA” branded add-on insurance products sold by car dealers between 1 May 2006 and 30 June 2018.

“The class action alleges that these products were little to no value to consumers,” a spokesperson for Maurice Blackburn says.

“We claim that group members were misled, such as not being told about important information regarding the insurance products, and that some group members paid for the insurance without knowing they purchased the products at all, or were told they needed to purchase it.”

WHO IS ELIGIBLE FOR A REFUND?

The class action affects persons who, at any time between 1 May 2006 and 30 June 2018:

– purchased or leased a vehicle from a car dealer;

– purchased or leased the vehicle using a loan arranged by the car dealer;

– purchased at least one of the following “MTA” branded add-on insurance products, issued by AAI, MTA or SLSL:

Loan Protection Insurance or Commercial Loan Protection Insurance

Equity or Equity Plus Insurance (also known as GAP insurance)

Cash Benefit Insurance

Extended Vehicle Warranty Insurance

Tyre & Rim Insurance

If people receive a notice from Maurice Blackburn by text, email or post, they are likely a group member in the class action. Notices will continue to be distributed over the coming weeks.

MTA is accused of using “misleading or deceptive conduct” to sell add-on insurance products at car dealerships. Picture: David Crosling

HOW DO YOU REGISTER?

Hundreds of thousands of people are eligible to register for the AAI & MTA Class Action.

Group members must register before 4pm on 18 June 2024 (AEST) if they want to be eligible to claim money from any settlement before the trial.

If group members want to opt out of the class action, they must also do this by 4pm on 18 June 2024 (AEST).

The deadline to register is 4pm on 18 June 2024 (AEST).

Check eligibility criteria and register here

Originally published as Maurice Blackburn class action against MTA insurance: See if you are eligible