Geico has agreed to pay an undisclosed amount to settle claims from insurers and employees for injuries suffered when they were injured when their medical insurance coverage was breached in the 2016 Collapse Insurance Fraud Case.
A court document filed in Brisbane’s Supreme Court today also names Geico Health Services as the insurer and the company as the party that breached the insurer’s medical insurance policy.
The Collapse case involved Geico’s employees, who were working in Queensland at the time of the incident.
Collapse Insurance fraud is a type of insurance fraud involving a person who is responsible for providing medical services to a person or group of people and the person or the group is in breach of the policy.
It is a criminal offence.
The Collapses case was brought by former Queensland Government minister Chris Higgins, who alleged that Geico had breached a legal obligation to cover people and their families injured by the collapse.
In a statement, Geico said it “regrets” the impact it has had on its customers, but said it would make “all reasonable efforts to ensure that this issue does not recur in the future”.
“We believe we have a strong policy and we will continue to work closely with the authorities to ensure our policy remains compliant,” the company said.
The company also said it was “disappointed” with the court decision, which “could have a material impact” on the company’s ability to attract and retain staff and contractors in Queensland.
“We are disappointed that this case has arisen as a result of the Collapse insurance fraud case brought by the Queensland Government,” the statement said.
“Our policy and practices have always been clear and consistent and we fully support our employees in this important role.”