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Westpac and Shine settle class action for $30m
Banking giant Westpac and plaintiff firm Shine Lawyers have agreed to a multimillion-dollar settlement in the Westpac Life proceedings.
Jerome Doraisamy
In late 2017, Shine Lawyers initiated proceedings on behalf of people who purchased insurance issued by Westpac Life, including superannuation funds, on the recommendation of financial advisers at Westpac, St.George Bank, Bank of Melbourne, BankSA or BT Advice.
“It is also alleged that Westpac did not inform its customers that they could obtain substantially similar or better policies of insurance from alternative insurers for lower premiums,” Shine said in a statement at the time.
“The class action claims that Westpac should not have acted in its own interests at the expense of those customers, and that they should be compensated for the excess premiums.”
Bank and firm statements
In a statement released to the ASX earlier on Wednesday, 28 April, Westpac announced a settlement of the class action, which is set to be capped at $30 million and does not include any admission of liability from the bank.
The settlement remains subject to approval by the Federal Court of Australia.
Shine head of class actions Jan Saddler said that the settlement is a “great outcome” for customers of Westpac, St George, Bank of Melbourne and BT who were charged either 4.3 per cent and/or 9.09 per cent more for the Westpac Life insurance policies than they would have been charged if they obtained the same insurance via independent advisers.
“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,” she said.
“We’re pleased with the outcome of our negotiations.”
Jerome Doraisamy
Jerome Doraisamy is the editor of Lawyers Weekly. A former lawyer, he has worked at Momentum Media as a journalist on Lawyers Weekly since February 2018, and has served as editor since March 2022. He is also the host of all five shows under The Lawyers Weekly Podcast Network, and has overseen the brand's audio medium growth from 4,000 downloads per month to over 60,000 downloads per month, making The Lawyers Weekly Show the most popular industry-specific podcast in Australia. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of Minds Count.
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