FORMER IAG CHAIRMAN BEGINS LEGAL ACTION

Nicholas Whitlam, former chairman of Insurance Australia Group (IAG), has commenced legal action in the New South Wales Supreme Court, demanding retirement benefits to which he claims he is entitled. Mr Whitlam’s counsel said that Mr Whitlam only resigned from his position as IAG chairman and subsequently from the board when told by fellow board members that he would be paid “the maximum possible retirement benefit” permitted by law. Counsel Anthony Bannon said that the benefits should have been paid from at least May 2001. “In fact, they didn’t pay anything until September 2003 and then they paid too little”, he said. A number of IAG and NRMA Insurance Ltd board members are expected to give evidence in the case, although current IAG chief executive Michael Hawker and chairman James Strong do not intend to appear.