A Victorian court has approved a $34 million add-on insurance class action settlement involving Suncorp.

The sum includes $8.5 million to law firm Maurice Blackburn for costs and disbursements, plus $1.36 million for administering the settlement distribution.

The named plaintiff receives $30,000 for the “burdens of time, inconvenience and stress” due to being the person leading the group’s claims.

The Supreme Court of Victoria’s Justice Patricia Matthews approved the settlement at the end of June after no objections were received from group members. Her reasons were published this week. 

The lawsuit involved the sale of add-on products through MTA Insurance, which Suncorp acquired in 2014 and later brought under its AAI subsidiary. It was alleged the products had reduced or no value and were sold to consumers in ways that breached the law. 

Suncorp, which no longer sells add-on cover through car dealers, said in February that while allegations continued to be denied, an agreement had been reached to settle.

Justice Matthews says a trial had been expected to run for 12 days, a judgment would not have come until late this year, and any appeal from the unsuccessful party would have led to further delays.

“In settling the proceeding now, there is certainty and distribution of the settlement sum can occur in about 13-14 months from the settlement approval,” she says.

See the ruling here.