CommInsure clients seek damages for bad financial advice

Customers sold overpriced insurance policies based on bad advice given by financial planners have launched a class action against CommInsure. 

Shine Lawyers commenced proceedings in the Federal Court on Friday 21 August 2020 on behalf of tens of thousands of affected policyholders. 

Class Actions Practice Leader Craig Allsopp said group members were entitled to compensation because they incurred financial losses as a result of conflicted or incorrect advice from financial planners affiliated with or directly employed by CommInsure’s parent company. 

“We allege the Commonwealth Bank’s licensed financial planners failed to inform their clients they could obtain substantially similar or better insurance policies with lower premiums from alternative insurers,” Mr Allsopp said. “Instead of putting their client’s best interests first, the planners were incentivised by commissions and other benefits to funnel people into expensive CommInsure policies. 

“Customers trusted their advisors to make the best decisions for them but they were let down and – in some cases – have lost thousands of dollars,” he said. 

If the class action is successful, Mr Allsopp said the amount each group member would receive in damages would depend on the premiums they have paid for their insurance for the period they held the policy. 

“It is far too difficult and expensive to launch individual legal claims against big corporations with deep pockets so this case gives people a fighting chance to claw back the money they’re owed with the strength in numbers afforded to them by a class action,” Mr Allsopp said. 

To be eligible for the class action you must have obtained a CommInsure policy (which may include death, TPD, trauma, income or business protection insurance) through Commonwealth Financial Planning Limited or Financial Wisdom Limited. 

To learn more about the CBA CommInsure Class Action and find out if you are eligible to join, please click here. 

Shine Lawyers are running several other #premiumrort class actions on behalf of hundreds of thousands of Australians who have been wrongfully overcharged through their insurance. To learn more about these actions, please click here.