The Federal Court has approved a $140 million settlement to a class action alleging overcharging of group insurance premiums.

Shine Lawyers launched the lawsuit against Colonial First State Investments and Colonial Mutual Life Assurance Society in January 2020, with AIA added to proceedings in October 2021 after it acquired CommInsure’s life insurance business.

The lawsuit alleged superannuation members with FirstChoice and Essential Super policies between January 22 2014 and February 15 2022 were overcharged for products including death, total and permanent disability and income protection covers.

Shine says the resolution was reached without admission of liability or wrongdoing.

“This outcome delivers closure and a meaningful measure of justice for those affected,” class action practice leader Sarah Thomson said.

Shine estimates “hundreds of thousands” of super members will be eligible to share in the settlement, which is inclusive of legal costs, expenses and applicable taxes.