Insurance Australia Group has reached a class action settlement over add-on insurance products sold through its motorcycle dealers.
The settlement involving a payment of $99m is subject to approval by the Federal Court of Australia.
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Johnson Winter & Slattery filed the class action against the IAG subsidiaries Swann Insurance and Insurance Australia over mis-sold insurance products, reported Reuters.
IAG said in a statement: “IAG exited these business areas with the sale of Swann’s rights to distribute through motor vehicle dealers in August 2016 and the cessation of distribution through motorcycle dealers in the financial year ended 30 June 2018.”
The company expects to have a net after tax impact of less than A$50m as part of this settlement. This is anticipated to reflect in the company’s earnings for the six months ended 31 December 2020.
Reportedly, IAG initially expected to pay around A$600m to A$1bn in settlement.
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By GlobalDataIn July this year, the Sydney-based insurer rolled out Family and Domestic Violence Policy in a bid to help its customers who may be affected by family and domestic violence.
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