Dead people charged life insurance
AMP has charged $1.3 million in life insurance premiums to more than 4600 dead people through their superannuation.
AMP, already hit by the fees-for-no-service scandal involving fees paid for financial advice, has now revealed it charged life insurance premiums despite knowing superannuation members had died.
Australia's largest wealth manager has identified 4645 superannuation members affected by the issue with about $1.3 million in premiums to be refunded.
That amount included lost earnings, AMP's group executive for wealth solutions and customer Paul Sainsbury told the banking royal commission on Monday.
AMP told regulators in June that it had identified 3124 members with $922,902 in premium refunds owing, the banking royal commission heard on Monday.
The inquiry heard AMP identified system errors that meant it did not stop deducting premiums for life insurance from dead super members accounts or did not process premium refunds, despite knowing the people had died.
Mr Sainsbury agreed with royal commissioner Kenneth Hayne QC that AMP had charged for something it was not entitled to charge.
AMP started an investigation in April, following revelations in the royal commission about Commonwealth Bank of Australia advisers charging dead customers' estates.