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Class action to support victims unaware of rip off insurance scheme
Shine Lawyers had launched a class action on behalf of superannuation fund members that is targeting as much as $500 million in overpayments for insurance.
Tony Zhang
Many Australians who have been slugged with excessive insurance fees don’t realise they have been the victim of a “premium rort” and could be eligible to make a claim for thousands of dollars in compensation, as class action campaigns ramp up against some of the country’s most popular insurers.
“We allege Westpac quietly and systematically pilfered excessive fees from their own customers to make millions in profits at the expense of those customers,” she said.
Shine’s investigations indicate that the average customer was overcharged between 4.5 per cent and 10 per cent in annual premiums.
“People trust their bank, so in almost all cases this conduct is unknown by consumers and has gone undetected, which is why we are urging people to contact Shine Lawyers so we can help [them see] if they are affected and if so to be a part of the class action,” Ms Saddler said.
While claims have already been filed against AMP this week in the Federal Court, similar proceedings are set to be launched against the Commonwealth Bank and Westpac Group’s BT in the coming days.
Shine practice leader Craig Allsopp said the combined actions would be one of the biggest moves against financial institutions in the wake of the banking royal commission.
Lead applicant Greg Lenthall was working as a cook on a low-income in 2012 when he signed up to a Westpac Life Insurance with an in-house financial adviser at his local Westpac branch.
Shine said that Mr Lenthall was only earning $750 per fortnight when he signed up, but he was charged approximately $400 per month in premiums from his retirement savings.
“I trusted the financial [adviser] to make the best decision for me, in my circumstances, and I thought I was getting a good deal but I was very let down,” Mr Lenthall said.
“It was a rort, it was wrong, and we all deserve to get back what is rightfully ours.”
While action against AMP and the Commonwealth Bank would focus on policies offered through advisers, action against BT would involve policies offered directly through its superannuation packages.
“This case allows people to fight for their money back with the strength in numbers afforded to them by a class action,” Ms Saddler said.
“Members can expect a claim of at least $1,000, with some individual cases as much as $10,000.”
