RACV, SGIO, SGIC and NRMA home insurance class action
Background
On 28 May 2024, Slater and Gordon commenced a group proceeding (class action) against Insurance Australia Limited (IAL) and Insurance Manufacturers of Australia (IMA) on behalf of RACV, SGIO and SGIC customers.
On 9 December 2024, Slater and Gordon commenced a class action against Insurance Australia Limited (IAL) on behalf of NRMA customers.
Consolidation
On 11 March 2025, the Honourable Justice Nichols ordered that the two class actions be consolidated into one proceeding to advance the best interests of group members by avoiding unnecessary cost and delay.
Group members
This proceeding is brought on behalf of current or former RACV, SGIO, SGIC and/or NRMA customers with a home and/or contents insurance policy.
If you renewed a home and/or contents insurance policy under the RACV, SGIO or SGIC brands in the period 29 May 2018 and 28 May 2024, or you renewed a home and/or contents insurance policy under the NRMA brand in the period 10 December 2018 and 9 December 2024, you may be affected.
Register your interest
If you do wish to participate in the class action, we encourage you to register your interest here. There are no out-of-pocket costs for registering. More information about how the proceeding is funded is available below.
Details of the claim
The plaintiffs allege that:
- IAL and IMA operated a pricing algorithm for their RACV, SGIO, SGIC and NRMA home insurance customers.
- This algorithm determined which home insurance customers were less likely to switch to a different insurer if their insurance premium increased.
- IAL and IMA increased the base insurance premiums for the loyal customers who were less likely to switch.
- The result was that some customers, including long term customers who were promised a loyalty discount, may have been charged a higher insurance premium due to the pricing algorithm.
- This negated the full benefit of their promised loyalty discount (the loyalty tax).
- IAL and IMA did not disclose this to customers.
We consider that this conduct may amount to misleading and deceptive conduct and unconscionable conduct, in breach of the ASIC Act.
Funding Arrangements – Group Costs Order
A group costs order (GCO) allows the legal costs incurred during a case to be calculated as a percentage of the amount of any settlement that may be recovered in the proceeding. This is on the basis that Slater and Gordon pays the costs of the proceeding and IAL and IMA’s legal costs if the case is unsuccessful.
The Court has ordered a GCO at a rate of 27.5% (including GST).
This rate is subject to review by the Court at the end of the proceeding. You will not have to pay any out-of-pocket costs as a result of your participation or registration in the class action.
Frequently Asked Questions
If you have held home and/or contents insurance from RACV, SGIO, SGIC and/or NRMA since 2018, we invite you to subscribe for updates here.
A class action is a type of legal proceeding in which one person, the lead applicant, brings a claim on behalf of a wider group of people who have all been affected by the same conduct.
By grouping claims together and pursuing them collectively, the overall value of the claim makes it economically worthwhile to do so, even if the value of individual claims are modest.
Slater & Gordon Limited.
Slater & Gordon has a long and proud history of holding companies who do the wrong thing to account. We’ve made our name by taking on hard cases and pursuing them relentlessly to achieve the best possible outcomes for our clients. Our firm ran some of the earliest class actions in Australia and has made history by achieving landmark settlements and judgments for groups affected by issues such as environmental contamination, defective medical products and financial misconduct.
Many of our cases have achieved a lasting legacy by improving corporate and governmental conduct, which in turn helps prevent harms and losses happening to others in the future.
Initially, we will only require you to provide the information requested when you fill in the subscribe for updates form. At a later stage, we may get in touch with you to request further information.
You will not be exposed to any out-of-pocket costs or adverse costs orders as a result of your participation in the class action.
Yes, you may be eligible and are not required to have had insurance from IAL or IMA for the whole period. Subscribe for updates here to stay up to date with the class action.
If you wish to participate in the class action, there is nothing you need to do at this time.
Yes, you may be eligible. Subscribe for updates here to stay up to date with the class action.
If you wish to participate in the class action, there is nothing you need to do at this time.
At this stage, all you need to do is subscribe for updates by filling in the form. This will not mean that you have joined a class action, you will have only subscribed for updates. We will get in contact with you if we need additional information from you.
Once you’ve subscribed we will keep you up to date about any new developments in the class action