MONTREAL, Oct. 23, 2012 /CNW/ - Intact Financial Corporation (TSX: IFC) today announced that its insurance subsidiaries operating in Quebec have reached an agreement in principle with Option consommateurs for an out-of-court settlement of a class action lawsuit regarding the 1998 ice storm. This tentative agreement is subject to approval by the Quebec Superior Court during the next few months.
The class action suit launched by Option consommateurs sought to determine, among other things, whether the insurance companies had an obligation to compensate all policyholders included in the class action for additional living expenses incurred as a result of the power outages, as well as the amount to be reimbursed.
The 1998 ice storm was Canada's most costly natural disaster. Approximately $1.6 billion was paid out to consumers by insurance companies, including more than $350 million by Intact subsidiaries.
The agreement with Option consommateurs applies to more than 200,000 clients insured with Belair Insurance Company, Allianz Insurance Company of Canada, AXA Assurances and ING Insurance Company of Canada (Commerce Group). This agreement in principle involves only Intact Financial Corporation's insurance subsidiaries and the class action suit against other insurance companies is still in progress.
The amount of the agreement is $12.5 million. Details of the agreement will be set out in a notice explaining eligibility conditions and the rights of those consumers who are included. In the meantime, consumers included in the class action who have moved in the years since the ice storm may send their current address by email to [email protected], or call 1 855 292-8861.
About Intact Financial Corporation
Intact Financial Corporation (www.intactfc.com) is the largest provider of property and casualty insurance in Canada. Intact offers home, auto and business insurance through Intact Insurance, belairdirect, Grey Power, BrokerLink and JEVCO.
SOURCE: INTACT FINANCIAL CORPORATION
For further information:
Vice President, Corporate Communications
+1 416 217 7206
Vice President, Investor Relations
+1 416 341 1464, ext. 45122