By Ryan Hewlett
Feb 28 - (The Insurer) - Suncorp has agreed to settle a class action filed in the Supreme Court of Victoria related to the sale of add-on insurance products at car dealerships, the Australian insurer confirmed on Friday.
The class action, brought by law firm Maurice Blackburn in March 2021, concerned Suncorp subsidiary AAI Limited’s sale of add-on insurance through MTA Insurance.
ASX-listed Suncorp confirmed in a statement on Friday that it had agreed to settle the proceedings. Suncorp added that it continues to deny the allegations made against it.
The agreement remains subject to court approval, it said.
“The agreed settlement will not have any material financial impact on Suncorp,” the insurer continued.
As reported by The Insurer at the time, the class action alleged that the insurer gave personal advice to consumers and “breached various obligations” in relation to that advice.
It also alleged that the insurer “engaged in misleading or deceptive conduct and made false or misleading representations”.
MTA Insurance was acquired by Suncorp in 2014 and specialised in retail motor insurance products sold through car dealerships across Australia, including loan protection insurance and equity plus insurance. The insurer no longer sells these add-on coverages through motor dealers.
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