Shine Lawyers has begun a class action against AMP alleging the financial services group’s superannuation members were “unfairly charged excessive premiums” across almost five years.

NM Superannuation, AMP Superannuation and Resolution Life Australasia are respondents in the lawsuit filed in the Federal Court. Resolution Life acquired AMP’s life business in 2020.

“This class action alleges that NM Super and AMP Super, as trustees of various AMP superannuation funds, failed to act in the best interests of their members,” the law firm said.

“Instead of sourcing competitively priced insurance policies from the broader market, they are alleged to have selected policies from a related party, AMP Life, even though similar cover was available elsewhere at lower cost. As a result, members may have paid unnecessarily high premiums, leading to an erosion of their superannuation savings.”

Shine alleges that AMP Life “was knowingly involved in these breaches of trustee duties”.

The alleged practices affected super members with life, total and permanent disability, and/or salary continuance insurance through an AMP super fund between June 2019 and April last year.

AMP says it will contest the lawsuit.