Commonwealth Bank, Westpac and AMP’s insurance arms are facing three class actions over ‘excessive insurance premiums’ that came to light through the Banking Royal Commission.
Shine Lawyers is preparing the class actions against CBA CommInsure Insurance, AMP Insurance and BT Super Insurance for allegedly selling customers overpriced life, income protection and total and permanent disability (TPD) cover.
Several hundred thousand AMP, CBA and BT customers are estimated to be impacted by the overcharging.
“The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry brought to light the concerning degree to which banks and financial institutions have taken advantage of their customers to boost their bottom line,” states the Shine Lawyers website.
The law firm is encouraging Australians to join the class action as it claims it would cost nothing and operate on a ‘no win, no fee’ basis.
Shine Lawyers class actions practice leader Craig Allsopp said the financial institutions knowingly sold the policies despite knowing there were better or cheaper policies with other insurers.
“We argue all three financial services providers behaved in a way that was unfair and illegal,” Allsopp said.
“The sheer number of people affected by these premium rorts shows we’re not just talking about a few bad apples but systemic misconduct in the industry.”
He added that class actions were the best way for customers to get their money back as it provides strength in numbers.
“The amount of money customers lost varies from a couple of hundred to several thousand dollars, so running individual legal claims won’t be viable in every case,” he said.
“The reality is, without class actions supported by litigation funders, most victims would likely never get their money back.”
The class action against AMP has already been filed to the Federal Court, while the class actions against BT and CBA will be lodged in coming weeks.
Yahoo Finance has contacted CBA, BT and AMP for comment.
Does this affect you?
Anyone who holds or previously held the following policies are encouraged to come forward to join the class action:
An AMP Flexible Lifetime Policy provided through financial advisers appointed by AMP Financial Planning (AMPFP), Charter Financial Planning (Charter) or Hillross Financial Services (Hillross).
A BT Super for Life, BT Super for Life Westpac Group, BT SuperWrap, BT SuperWrap Essentials, BT Panorama Super, or BT Superannuation Invest Fund plan between 2014 and 2020.
A CommInsure life or income protection insurance policy provided through financial advisers appointed by Commonwealth Financial Planning Limited, Financial Wisdom Limited, Count Financial Limited or BW Financial Advice.
You can sign up to the class action via their website.
Make your money work with Yahoo Finance’s daily newsletter. Sign up here and stay on top of the latest money, economy, property and work news.