Australia’s biggest banks to pay $84.51m for insurance lawsuit

CBA, Westpac, and ANZ allegedly misled customers by selling or issuing policies of no value.

Three of Australia’s biggest banks settled separate class action lawsuits for US$84.51m (A$126m) with Slater & Gordon for allegedly misleading one million customers by selling and issuing policies with no value, reports Reuters.

Slater & Gordon further said that the Commonwealth Bank of Australia (CBA), Westpac Banking Corp, and the Australia and New Zealand Banking Group (ANZ), along with the banks' associated parties made customers believe their policy payments were "compulsory or provided value to them.”

CBA, along with Colonial Mutual Life Assurance Society and AIA Australia, would together pay A$50m to their customers.

ANZ, along with QBE Insurance and OnePathLife and OnePath General Insurance–indirect units of Swiff firm Zurich Insurance–will pay A$47m to their customers under the settlement. Of this, ANZ will contribute A$42m.

Westpac would pay A$29m, subject to court approval.

Read the report here.