Slater and Gordon has filed a class against NRMA Insurance. The law firm’s media release said the statement of claim filed in the Supreme Court of Victoria is “on behalf of millions of customers” and concerns the pricing of the insurer’s home and contents policies.
The release said the policies were issued by Insurance Australia Limited (IAL) as part of a campaign called “Get Your insurance Back.”
In response, Insurance Australia Group (IAG), the parent company, issued a release this morning stating “IAL will defend these proceedings.”
“We’re alleging that millions of Australians paid premiums year-on-year for NRMA home insurance on the promise that they were getting a discount,” said Ben Hardwick (pictured above), Slater and Gordon’s class actions practice group leader.
However, Hardwick said because of a pricing algorithm used by the insurer, long-term customers were unknowingly paying extra in the form of higher base premiums.
“The reality is that they are likely to have received cheaper insurance from these brands had their loyalty not been a factor in their renewal calculations,” he said.
The law firm alleges this conduct “may amount to misleading and deceptive conduct and unconscionable conduct, in breach of the ASIC Act.”
The firm’s release cites what it calls a case study where an alleged NRMA customer since 1989 saw an increase of nearly 60% in his premium. When he checked under a different name, the same policy, he said, was up to $4000 cheaper.
The IAG release said this class action follows the class action by the same law firm in May 2024, which IAL and IMA are also defending. That action also relates to loyalty offers for NRMA Insurance home, contents and home and contents insurance policies.
“IAL and IMA maintain they have delivered on loyalty offers made to customers and do not agree that they have misled customers about the extent of the discounts they would receive,” said the insurer’s release.
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