The controversial insurance scheme at the heart of the Commonwealth Bank’s secrecy bid to the banking royal commission has been scrapped.
CBA announced the move to scrap the Credit Card Plus (CCP) insurance policy on Wednesday morning, five days after it was a subject of a rejected non-publication direction from the bank.
The application referred specifically to documents relating to, and comments made by executive Clive Richard van Horen in a draft statement to the commission, about CCP.
Commissioner Kenneth Hayne declined the application on Friday for failing to sufficiently identify “damage to [CBA] or any other person that would follow from publication of the material”.
CCP was also behind a $10 million refund given by the bank in August last year after it was found they had sold the policy to customers unlikely to meet the employment criteria and as a result unable to claim the insurance.
CBA group executive of retail banking Matt Comyn said on Wednesday the bank was “firmly committed to doing what is right for the customer”.
“We’re working closely with ASIC to provide refunds to customers who may have been ineligible to claim some benefits due to their employment status at the time of taking out the policy,” Comyn said.
"While it is fundamental to the nature of insurance products that many customers who have them will not claim on them, and indeed they hope they won't, we need to ensure that they are at least properly eligible to do so.”
CCP was scrapped alongside Personal Loan Protection Insurance with both set to be withdrawn from the market by 30 June.
The bank said it would proactively call customers who will be affected by scrapping the policies and set aside $16 million for refunds.