AMP charged more than 4600 dead superannuation customers for life insurance, despite knowing there was no life left to insure.
AMP owes the superannuation members' deceased estates about $1.3 million, in the latest fees-for-no-service scandal to hit Australia's largest wealth manager.
AMP knew about a similar issue involving life insurance premiums not being refunded to deceased estates in 2016, the banking royal commission heard on Monday.
But it only started an investigation in April, after the royal commission revealed some Commonwealth Bank of Australia advisers had continued charging dead customers fees.
AMP Life then discovered premiums were still being deducted from the accounts of dead AMP superannuation members, despite it being told they had died and processing their death claims.
AMP blamed a number of system errors that meant it either did not stop deducting life insurance premiums from dead super members' accounts or did not process premium refunds owed to them.
By June when AMP reported the issue to regulators, it estimated $922,902 in premium refunds were owing to 3124 members.
AMP executive Paul Sainsbury revealed the number has now reached 4645 dead customers and $1.3 million in premiums.
