Westpac has agreed to settle a class action relating to life insurance premium payments, and faces a payout of as much as A$30 million.

Shine Lawyers started the class action in October 2017 on behalf of people who purchased life insurance issued by Westpac Life on the recommendation of financial advisers at Westpac and its subsidiaries.

The claim was that between 2011 and 2017 customers who took out a life policy following advice from a financial adviser in the Westpac network were charged higher premiums than people who took out identical insurance on the recommendation of independent advisers.

The class action also claimed that Westpac acted in its own interests at the expense of those customers and that the customers should be compensated for the excess premiums.

According to the claim, it was Westpac’s fiduciary obligation to avoid the possibility of conflicts between the interests of its customers and its own interests.

Westpac said in a statement yesterday that the settlement is capped at $30 million and is subject to court approval.

“The group has resolved this matter without any admission of liability,” Westpac said.

A spokesperson for Shine Lawyers said it estimated that around 100,000 customers were affected and 10,000 joined the class action. It is still possible to join the class.