Australian banking giant Westpac has agreed to settle a class action lawsuit that has been ongoing since October 2017.
According to the firm, the case relates to “premiums paid for certain insurance policies taken out with Westpac Life Insurance Services between 2011 and 2017”.
The lawsuit by Shine Lawyers alleged the bank’s advisers “unfairly overcharged” clients for life insurance products.
Westpac will pay a settlement capped at A$30m (£17m, $23m, €19m) which is subject to approval by the federal court of Australian.
But the group said it has “resolved this matter without any admission of liability”.
Lawsuit
On 12 October 2017, Shine Lawyers commenced a class action on behalf of people who purchased life insurance issued by Westpac Life, including to superannuation funds, on the recommendation of financial advisers at Westpac, St George Bank, Bank of Melbourne, BankSA or BT Advice.
The law firm alleged customers who received financial advice from the Westpac-owned financial advisers and, in reliance on that advice, took out a life insurance policy with Westpac Life, were:
- Charged higher premiums for life insurance policies than persons who obtained identical insurance issued by Westpac Life on the recommendation of independent financial advisers; and,
- Not informed by Westpac that they could obtain substantially similar or better policies of insurance from alternative insurers for lower premiums.
Shine Lawyers head of class actions Jan Saddler said: “We encourage all those customers of Westpac, St George, Bank of Melbourne and BT who obtained life insurance in the period between 2011 and 2017 to register with Shine Lawyers to ensure they are included in the settlement.”
