CommInsure Class Action

Class actions are an important mechanism within Australia’s legal system that allow large groups of people to come together to pursue a claim collectively. 

Three criteria must be met for a class action to take place: 

1. There must be seven or more people that have claims against the same defendant; 

2. The claims must arise out of the same, similar, or related circumstances; and 

3. The claim must relate to at least one common issue of law or fact. 

Class actions in Australia work on an “opt-out model”. This means that anyone who fits within the definition of a “group member” is automatically part of the class action and will be bound by any court approved settlement of the proceeding or the judgment of the court, unless they opt out. 

Due to the nature of class actions, the first stage of the proceeding can take anywhere between twelve months to three years or longer from the date of commencement to resolution and will depend on the particular case and the nature of the claim. 

Unless a court approved settlement is reached, the first stage of the proceeding will only resolve the Applicants’ claims and the common issues in the proceeding. The group member claims will be resolved individually in the second stage of the proceeding. 

The class action is brought by Edward Thomas and others (the Applicants). The Respondents are Commonwealth Financial Planning Limited (CFP), Financial Wisdom Limited (FWL), The Colonial Mutual Life Assurance Society Pty Limited (CommInsure or CMLA) and AIA Australia Limited (AIAA). The claim relates to insurance advice provided by employees or authorised representatives of CFP and FWL between 21 August 2014 and 21 August 2020. 

The class action alleges that the Respondents failed to act in their clients' best interests. This is because the Respondents allegedly:   

• failed to inform their clients that they could obtain substantially similar or better insurance policies from alternative insurers for lower premiums; and  

• were incentivised through commissions and other financial and non-financial benefits to recommend insurance through CommInsure, being a related party to CFP and FWL. 

It is also alleged that the Respondents’ conduct is likely to have resulted in their clients paying higher insurance premiums.  

The class action seeks compensation for the excess premiums these clients paid as a result of the financial advice they were given by, and the conduct of, the Respondents. 

The notices approved by the Court will be sent by email or ordinary pre-paid post. Group members should expect to receive a notice by email by 29 April 2026 or by post by 8 May 2026.

If you have not received a notice, please check your inbox (including junk and spam folders) and also your postal mail. As there can be delays with ordinary pre-paid post (including to regional areas and areas affected by heavy rain, floods or tropical cyclones), if you have not received a notice, you are encouraged to wait until 8 May 2026 before making an enquiry with the CommInsure Class Action Member Assistance Team on +61 3 9908 8909 or comminsureclassaction@enterclaim.com.

The class action only relates to life insurance policies issued by CommInsure that provided cover for one or more of the following: 

• Life; 

• Terminal Illness; 

• Total & Permanent Disability (TPD); 

• Trauma; 

• Income Protection; 

• Business Overheads. 

The CommInsure insurance policies that provided such cover included the Total Care Plan, Total Care Plan Super, SMSF Plan, Income Care, Income Care Plus, Income Care Platinum, and Essential Cover policies.

You will be a group member if between 21 August 2014 and 21 August 2020: 

• you received advice in relation to a CommInsure insurance policy from a financial adviser or an authorised representative of: 

  • Commonwealth Financial Planning Limited (CFP); or 

  • Financial Wisdom Limited (FWL), 

AND 

• you (or through your superannuation fund as a member) obtained, renewed or retained a CommInsure insurance policy which provided cover for one or more of the following: 

  • Life; 

  • Terminal Illness; 

  • Total and Permanent Disability (TPD); 

  • Trauma; 

  • Income Protection; 

  • Business Overhead. 

The CommInsure insurance policies that provided such cover included the Total Care Plan, Total Care Plan Super, SMSF Plan, Income Care, Income Care Plus, Income Care Platinum, and Essential Cover policies.

You do not have to pay any money out of pocket to participate in this class action and no money will be taken from your superannuation account.

The Applicants each entered into a litigation funding agreement (Funding Agreement) with Woodsford, a litigation funder. This means that Woodsford has agreed to pay part of the Applicants' costs of the CommInsure Class Action, which includes legal fees and third-party costs. Shine Lawyers has carried, and continues to carry, the balance of the legal fees and third-party costs on a “no win no fee” arrangement.

The legal fees and costs to run the class action must be assessed before they are paid and are subject to final approval by the Federal Court. The Federal Court will only approve deductions for legal fees and costs that the judge considers are fair and reasonable.

Before payments are made to eligible Group Members, the Applicants will seek an order from the Court that eligible Group Members contribute a proportion of the amount of compensation that they are awarded under the settlement towards the approved fees and costs of running the proceeding. This is called a Common Fund Order.

If a Common Fund Order is made, the approved fees and costs will be deducted from the settlement before any payments are made to eligible Group Members.

The Federal Court will hear the Applicants’ application seeking approval of the proposed settlement and proposed deductions at 9:30am on 3 August 2026 in Melbourne.

Further information on costs is set out in the Notice of Proposed Settlement sent to potential Group Members in the section “Litigation Funding and Costs”, including under the heading “Proposed Deductions”.

Yes, your contact details will remain confidential, and your consent will be sought before any of your personal information is disclosed. 

Shine Lawyers and Enterclaim will only use your personal information strictly for the purpose of the CommInsure Class Action and in accordance with Shine Lawyers’ Privacy Policy. A copy of that Privacy Policy can be accessed at the following web page: Privacy Policy | Shine Lawyers. 

If you received “Notice A” of the Notice of Proposed Settlement, you must complete and submit a registration form by 4pm AEST on 11 June 2026 if you wish to have your eligibility assessed to receive a payment under the proposed settlement. Any registrations received after this deadline will not be accepted.

If you decide to participate in the proposed settlement, you can complete the registration form at comminsureclassaction.enterclaim.com. Select the “Deemed Registrant” option.

If you received “Notice B” of the Notice of Proposed Settlement, you must verify your details by completing all mandatory fields of your registration form by 4pm AEST on 11 June 2026, if you wish to have your eligibility assessed to receive a payment under the proposed settlement. You will not be able to verify your details after this deadline.

You can verify your registration at comminsureclassaction.enterclaim.com. Select the “Registered Person” option. You will need to enter your Registration Number (printed on the email or letter sent to you with Notice B) and other identifying information to access your registration and verify your details.

If you received “Notice C” of the Notice of Proposed Settlement, you must make an application to the Court for a grant of leave to participate in the settlement before 3 August 2026 if you wish to participate in the proposed settlement. The application for leave will need to outline to the Court the reason(s) why you did not register by 29 August 2025. You should seek independent legal advice if you wish to pursue this option.

We are unable to confirm whether or not any late registrants will be granted leave by the Court to participate in the proposed settlement. It is ultimately at the Court’s discretion whether leave will be granted, and late registrations will be accepted.

If you are a Group Member who has not opted-out of the class action and you wish to object to the proposed settlement, you must complete a Notice of Objection and submit it to Shine Lawyers at the address below by 4pm AEST on 11 June 2026.

• Email: comminsureclassaction@enterclaim.com

• Post: CommInsure Class Action, GPO Box 2985, Melbourne VIC 3001

A Notice of Objection was included with the Notice of Proposed Settlement and can also be downloaded from ‘Case Documents’.

It is not possible to estimate a specific figure that each person can expect to receive, or timeframes for when eligible Group Members may expect to receive compensation.

The Federal Court will hear the application seeking approval of the proposed settlement at 9:30am on 3 August 2026 in Melbourne. At the hearing, the Applicants will also seek orders approving a proposed Settlement Distribution Scheme. The proposed Settlement Distribution Scheme will set out the principles for distribution of the settlement to eligible group members.

A copy of the proposed Settlement Distribution Scheme will be available in the “Case Documents” section after 2 July 2026.

Further updates will be provided once the outcome of the application is known.

Every class action settlement is subject to approval from the Federal Court.

The Federal Court will hear the application seeking approval of the proposed settlement at 9:30am on 3 August 2026 in Melbourne. At the hearing, the Applicants will also seek orders approving a proposed Settlement Distribution Scheme. The proposed Settlement Distribution Scheme will set out the principles for distribution of the settlement to eligible group members.

If the Court approves the proposed settlement, an administrator of the Settlement Distribution Scheme will be appointed by the Federal Court. The role of the administrator is to distribute compensation in accordance with the scheme and organise payment to eligible Group Members as efficiently as possible.

A copy of the proposed Settlement Distribution Scheme will be available in the “Case Documents” section after 2 July 2026.

In return for funding the CommInsure Class Action, the Applicants agreed that if the class action is successful (through a settlement), they will: 

• repay, from the settlement: 

  • any costs incurred by Woodsford in relation to the class action (including any fees, interim adverse costs, security for costs, or upfront insurance premiums relating to “after the event” insurance or adverse costs insurance); 

  • Woodsford’s funding commission or “Success Fee”;  

  • unpaid (including deferred and contingent) insurance premiums due under any after the event insurance policy; and 

  • fees deferred by Shine Lawyers for recovery from any settlement or judgment, together with an uplift of 25% on those deferred fees. 

• apply for an order that will fairly distribute the Applicants’ costs among all group members who have benefited from the action. This may be by way of what is known as a Common Fund Order, or it may be by another order of the Federal Court. 

Woodsford’s funding commission or “Success Fee” means the amount equal to 27.5% of the settlement, or 3.5 times the Cash Outlay.

The Cash Outlay is the total amount of legal and other fees and costs (including GST) advanced by Woodsford plus all other fees and costs relating to the class action reasonably incurred by Woodsford. Those costs include Shine Lawyers’ fees, third party costs (including barristers’ fees), and upfront (but not deferred and contingent) premiums for after the event insurance and other costs relating to that insurance.

Woodsford’s Success Fee is estimated to be approximately $17.85 million. However, Woodsford has agreed to limit its Success Fee to no more than $9,995,210. The amount of Woodsford’s Success Fee to be deducted from the settlement is subject to approval by the Federal Court.

If the Federal Court approves the proposed settlement, the Applicants will, pursuant to the Funding Agreement signed by the Applicants and Woodsford:

1. apply for a Common Fund Order in an amount consistent with Woodsford’s Success Fee. This is 3.5 times the Cash Outlay (approximately $17.85 million), however, Woodsford has agreed to limit its Success Fee to no more than $9,995.210.

2. apply to have any fees they incurred for their own time involvement in the class action paid from the proceeds obtained from a settlement or judgment. The Applicants each propose to seek a payment of $20,000 to reimburse them for their time and expenses incurred in representing Group Members in the class action.

The Applicants will also seek orders approving a proposed Settlement Distribution Scheme. The proposed Settlement Distribution Scheme will set out the principles for distribution of the settlement to eligible group members.

If the Court approves the proposed settlement and Settlement Distribution Scheme, an administrator of the Settlement Distribution Scheme will be appointed by the Federal Court. The role of the administrator is to distribute compensation in accordance with the scheme and organise payment to eligible Group Members as efficiently as possible.

A copy of the proposed Settlement Distribution Scheme will be available in the “Case Documents” section after 2 July 2026.

The Applicants will apply for the settlement to be distributed as follows:

1. First, repayment of Woodsford’s Cash Outlay;

2. Secondly, payment of Woodsford’s Success Fee plus Shine Lawyers’ deferred fees and an uplift on those deferred fees, plus any unpaid insurance premiums relating to ATE insurance or Adverse Costs insurance due, including any deferred and contingent premiums; and

3. Thirdly, payment of the balance to all group members (including the Applicants) in accordance with a distribution scheme approved by the Federal Court.

Please note that the Common Fund Order and the amounts proposed to be deducted from the Gross Proceeds is strictly subject to the Federal Court’s approval.

If a group member’s insurance policy was owned by their superannuation fund, and premiums for that policy were paid out of the superannuation fund, some or all of the money they receive from the settlement will be required to be repaid into their superannuation account.

Further information on costs is set out in the Notice of Proposed Settlement sent to potential Group Members in the section “Litigation Funding and Costs”, including under the heading “Proposed Deductions”.

This class action seeks compensation for excess premiums charged by CommInsure to its customers during the period 21 August 2014 to 21 August 2020. It does not make any allegations in respect of Group Members’ eligibility to receive cover under their CommInsure life insurance policies.

If you received “Notice A” of the Notice of Proposed Settlement, you must complete and submit a registration form by 4pm AEST on 11 June 2026 if you wish to have your eligibility assessed to receive a payment under the proposed settlement. Any registrations received after this deadline will not be accepted.

If you decide to participate in the proposed settlement, you can complete the registration form at comminsureclassaction.enterclaim.com. Select the “Deemed Registrant” option.

If you received “Notice B” of the Notice of Proposed Settlement, you must verify your details by completing all mandatory fields of your registration form by 4pm AEST on 11 June 2026, if you wish to have your eligibility assessed to receive a payment under the proposed settlement. You will not be able to verify your details after this deadline.

You can verify your registration at comminsureclassaction.enterclaim.com. Select the “Registered Person” option. You will need to enter your Registration Number (printed on the email or letter sent to you with Notice B) and other identifying information to access your registration and verify your details.

If you received “Notice C” of the Notice of Proposed Settlement, you must make an application to the Court for a grant of leave to participate in the settlement before 3 August 2026 if you wish to participate. The application for leave will need to outline to the Court the reason(s) why you did not register by 29 August 2025. You should seek independent legal advice if you wish to pursue this option.

We are unable to confirm whether or not any late registrants will be granted leave by the Court to participate in the proposed settlement. It is ultimately at the Court’s discretion whether leave will be granted, and late registrations will be accepted.

You do not need to provide any documents at this stage, but you may be asked to provide additional information and documents at a later stage. We encourage you to keep documents of the following types safe and secure in one location so that they are easy to retrieve should you be asked for them:

• Policy schedules;

• Renewal summaries;

• Statements of Advice and other letters and emails from your financial adviser, and any notes you made during meetings or telephone calls with your financial adviser;

• Application forms;

• Cancellation letters (if applicable); and

• Certificates of currency (if applicable).

If you registered to participate in the CommInsure Class Action by the Court-ordered deadline of 29 August 2026, you should receive “Notice B” of the Notice of Proposed Settlement in late April or by early May 2026. You should read the notice carefully as it outlines your options regarding the proposed settlement.

If you did not register by 29 August 2026 (or if you completed a late registration form after that date), you should receive “Notice C” of the Notice of Proposed Settlement in late April or by early May 2026. You should read the notice carefully as it outlines your options regarding the proposed settlement.

A member of the CommInsure Class Action Member Support Team can also check whether you have already registered to participate in the class action.

You have received a notice because if you are a Group Member your legal rights will be affected by the proposed settlement. Either:

• you have registered for the class action (or completed a late registration form); and/or

• the Respondents’ records indicate that you or your superannuation fund held a relevant insurance product issued by CommInsure. The Respondents to this class action are Commonwealth Financial Planning Limited (ACN 003 900 169), Financial Wisdom Limited (ACN 006 646 108), Colonial Mutual Life Assurance Society Pty Limited (ACN 002 348 352) (CommInsure), and AIA Australia Limited (ACN 004 837 861).

The Respondents were ordered by the Federal Court to provide your contact details so that the Court approved Notice of Proposed Settlement could be sent to you.

You should read the notice carefully as it outlines the options available to you regarding the proposed settlement and the deadlines for exercising those options.

The Court-ordered deadline for Group Members to take up the opportunity to opt-out of the class action was 4pm AEST on 29 August 2025 (the Class Deadline).

If you did not return a completed and signed Opt out notice (Form 21) to the Victoria District Registry of the Federal Court of Australia by the Class Deadline but you still wish to opt-out of the class action, you must make an application to the Federal Court seeking leave to opt-out before 3 August 2026. The application for leave will need to outline to the Court the reason(s) why you did not opt-out by 29 August 2025. You should seek independent legal advice if you wish to pursue this option.

EnterClaim is a secure digital class action administration platform developed by KordaMentha to streamline the collection, validation, and processing of claims.  

Further information on EnterClaim can be found at https://enterclaim.com.

For further information about the class action and updates, you should monitor the Shine Lawyers website and the Registration Portal (comminsureclassaction.enterclaim.com).

There are many potential Group Members. To help minimise costs, you are encouraged to carefully read the notice approved by the Court and access more information on this page and comminsureclassaction.enterclaim.com. If you have an enquiry that is not answered in the notice or the Frequently Asked Questions, please contact the CommInsure Class Action Member Assistance Team on +61 3 9908 8909 or comminsureclassaction@enterclaim.com.

This is not a scam. The notices sent to group members were approved by the Federal Court of Australia on 16 March 2026 in Edward Thomas and Others v Commonwealth Financial Planning Limited (ACN 003 900 169) and Others, proceeding No. VID 559 of 2020. 

You should remain vigilant when accessing or providing information in relation to the CommInsure Class Action and make sure you are dealing with persons from the CommInsure Class Action Member Assistance Team or Shine Lawyers. 

If you have any concerns, and for more information about the class action, you should visit the following web pages: 

• the Shine Lawyers website at shine.com.au/cbaclassaction 

• the Registration Portal - comminsureclassaction.enterclaim.com