GEICO to pay millions in separate settlements

GEICO to pay millions in separate settlements | Insurance Business America

Motor & Fleet

GEICO to pay millions in separate settlements

One case involves auto claims adjusters

Motor & Fleet

By
Terry Gangcuangco

GEICO is to shell out around $8 million to settle with auto claims adjusters and policyholders in two separate cases.

In the case involving auto claims adjusters, the Berkshire Hathaway subsidiary was accused of wage and hour laws violations. Lodged by both former and current colleagues in Maryland and New York, the complaints had been refuted by GEICO, claiming that the supposed overtime hours weren’t logged on the adjusters’ time cards.

According to Bloomberg Law, the $6 million settlement was approved by Judge George L. Russell III earlier this week.

Meanwhile, in a separate development, policyholders of the insurance giant have sought preliminary approval for a $1.9 million settlement. The New Jersey case features allegations that GEICO failed to pay title or registration transfer fees upon the total loss of insured vehicles.

The news comes after Progressive Insurance agreed to a $48 million settlement with New York drivers. In Progressive’s case, a class action lawsuit alleged that the company systematically undervalued claims made by the motorists whose vehicles were totaled.

According to the claim, the insurer supposedly employed third-party software that undervalued the pre-accident sales price of the vehicles to reduce payout amounts. Progressive agreed to settle but denied any wrongdoing.

In June, GEICO also made headlines after settling a case involving former WWE star Tammy Lynn Sytch, previously known as ‘Sunny’ in the wrestling organization.