Farm Insurance :: News

Share this news item!

Victorian Court Sets Legal Cost Boundaries in IAG Class Action Suit

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

A crucial court ruling in the Victorian Supreme Court has provided a significant directive regarding legal expenses in a class action facing Insurance Australia Group (IAG).

Justice Lisa Nichols has endorsed a 30 percent limit on the fees lawyers can charge as part of the payout, ensuring a bigger portion of settlements or awards is kept with the affected shareholders.

Such a cost structure offers a more predictable financial outcome for plaintiffs in class actions, particularly with the uncertainties surrounding the case outcomes.

Justice Nichols highlighted that the approved group costs order, which encapsulates GST, presents a safeguard for plaintiffs by securing a definitive portion of the settlements. This structure notably lessens the financial risks plaintiffs undertake, as their compensation remains insulated from disproportionate legal fees. This fixed fee measure is especially appealing given the unpredictable and often extensive legal costs that come with protracted class action battles.

Representing the group members, Damian Norris filed the application for the group costs order, a modality that spells out the legal reimbursement to the attorneys that is bound to a fixed percentage of the settlement figure. Particularly for this case, the issue at hand was IAG's alleged misuse of outdated Quarantine Act wordings in its business interruption policies, which did not account for COVID-19 related claims - a significant oversight leading to investor loss.

The order has resonated within legal confines of the financial industry, indicating IAG's peripheral involvement with the matter. While IAG showed a neutral stance towards the costs order application, their primary focus remains on confronting the accusations of misleading conduct and inadequate informative disclosure, as claimed by the litigants.

In the intricate dance of legal actions, Quinn Emanuel Urquhart & Sullivan orchestrates the motion against IAG, lodged back in 2022, with the insurer resolute in contesting the allegations. Drawn under the scrutiny are claims that IAG misrepresented its financial position and failed to uphold continuous disclosure guidelines, potentially inflating its share value and leading stakeholders to err in their investment decisions between March 11 and November 20, 2020.

This legal development signals a shift towards increased equity and fairness for the claimants embroiled in class actions. Moreover, it promotes the efficient deployment of legal resources and stands as a deterrent to unnecessary escalation in legal fees. The class action encompasses those investors who engaged with the market within the specified period, and as the proceedings unravel, the ruling sets a precedent on managing costs in collective legal pursuits.

Published:Friday, 1st Mar 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Steadfast Unveils Prevail: A New Era in High Net Worth and Farm Insurance

17 Jan 2026: Paige Estritori

In a significant development for the Australian insurance landscape, Steadfast has announced the launch of Prevail, a new specialist agency designed to cater to high net worth individuals and the farming sector. This initiative brings together three well-established underwriting agencies-Mansions, Dawes, and Argis-under a unified brand, aiming to provide comprehensive and tailored insurance solutions. - read more

Harland Green Launches Comprehensive All-Risk Insurance for Large-Scale Farms

17 Jan 2026: Paige Estritori

Harland Green, a newly established Lloyd's coverholder, has introduced an all-risk farm insurance package specifically designed for large commercial farming operations in Australia. This initiative aims to address the complex and evolving needs of the agricultural sector by offering comprehensive coverage that encompasses various aspects of farm operations. - read more

Allstate Underwriting and Mitsui Sumitomo Join Forces to Strengthen Farm Insurance Offerings

17 Jan 2026: Paige Estritori

Allstate Underwriting Agencies has announced a strategic partnership with Mitsui Sumitomo Insurance (MSI) to enhance its capacity in providing insurance solutions for medium, small, and hobby farms across Australia. This collaboration is set to bolster Allstate's presence in the farm pack market, offering tailored products that meet the specific needs of these farming segments. - read more

Rural Affinity and Munich Re Strengthen Agricultural Insurance in Australia

09 Jan 2026: Paige Estritori

In a significant development for Australia's agricultural sector, Rural Affinity has renewed its partnership with Munich Re Specialty - Global Markets under a new five-year agreement. This collaboration, which began in 2006, is set to enhance the availability and scope of agricultural insurance products across the country. - read more

WFI Insurance Highlights Significant Drop in Farm Liability Claims

09 Jan 2026: Paige Estritori

WFI Insurance has reported a notable decrease in farm liability claims across most categories, signaling a positive trend in safety practices within the Australian agricultural sector. The insurer observed a 75% reduction in falls from height over the past year, alongside a 30% decline in impact injuries, marking the lowest level in four years. - read more

Elders Insurance Highlights Increased Summer Storm Risks for Farmers

09 Jan 2026: Paige Estritori

Elders Insurance is urging Australian farmers to prepare for another damaging summer, with claims data revealing the scale and financial impact of storm activity across the country's agricultural regions. Analysis of storm-related farm insurance property claims over the last two years indicates that summer accounts for the highest number of claims nationally. - read more

Click for more Insurance News

Farm Insurance Articles

Agribusiness Risk: Liability Issues Facing Australian Farmers Today

The agricultural sector in Australia carves a significant portion of the country's economy, contributing to its GDP and providing employment across rural and suburban areas. Thus, navigating the complexities of agribusiness is not just a matter of crop cultivation and livestock management, but also of understanding the intricate web of liability risks that come with the terrain. - read more

Income Protection for Farmers: Ensuring Stability Through Tough Times

The world of farming is one filled with uncertainties. Weather conditions, market prices, and various other factors can create a highly volatile income stream for those within the agricultural sector. This unpredictability can lead to financial instability that impacts not only the farmers themselves but also their families and the larger rural community. - read more

When the Rain Doesn't Come: Financial Planning Tips for Persistent Drought

For farmers across rural Australia, the unyielding dry spells brought on by persistent drought conditions are not just an environmental concern but a significant financial challenge. Effective financial planning becomes a cornerstone strategy for ensuring the resilience and longevity of these crucial agricultural businesses. The prickling heat and parched earth serve as stark reminders of nature's capacity to impact livelihoods, especially when the rain doesn't grace the farmlands for extended periods. - read more

The importance of income protection insurance for hobby farmers

As a hobby farmer, you may not rely on your farm for your main source of income. Perhaps you have a full-time job but enjoy farming as a way to supplement your income and pursue a passion. However, just because farming is a hobby does not mean there aren't risks involved. In fact, hobby farmers face many of the same risks as commercial farmers, such as injury, illness, loss of crops or livestock, and damage to property. - read more

Preparing for the Worst: Developing a Comprehensive Disaster Response Plan for Your Farm

As a farmer, you know that unexpected events can have a significant impact on your farm and your livelihood. Natural disasters, such as floods, fires, droughts, and storms, can occur at any time and have devastating consequences. That's why it's crucial to have a comprehensive disaster response plan in place to protect your property, assets, and, most importantly, your loved ones and livestock. - read more

Top 10 Ways Australian Farmers Can Slash Insurance Costs Without Risking Coverage

Welcome to our definitive guide for Australian farmers on managing one of the most crucial aspects of their business: insurance. As a cultivator of the land, you're no stranger to the unpredictability of nature and the market. From intense weather events to fluctuating market demands, your line of work comes with its unique set of risks. Hence, safeguarding your livelihood with the right insurance is not just important—it's essential. - read more

Need a Quote?

Start your free farm insurance quote comparison here.

Knowledgebase

Deductible:
The amount you must pay out-of-pocket for expenses before your insurance company covers the remaining costs.

This website is owned and operated by Clark Family Pty Ltd (as Trustee for the Clark Family Trust) 43 Larch Street Tallebudgera QLD 4228, A.C.N. 010281008.

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.