The Insurance in Superannuation Voluntary Code of Practice will help life insurance cover to be better understood and set improved expectations around contributions and premiums, said the Insurance in Superannuation Working Group (ISWG) of its release today.
ISWG chair Jim Minto said the voluntary Code, which would come into effect from 1 July 2018, would improved super member value and protections and help build awareness around insurance inside super which has been cited as a continuting issue.
According to a joint release from ISWG and the Association of Super Funds of Australia (ASFA), included in the release of the Code today was:
- A framework to set expectations about the maximum amount of superannuation contributions that should be used for automatically provided life insurance premiums
- Simpler processes for members to opt out of automatic life insurance
- Simplified disclosure and improved superannuation fund member communications about insurance
- Requirements to reduce multiple insurance policies by cancellation of some insurance cover, after funds contact members, in cases where member accounts are inactive and insurance exists
- Provision of better and more timely assistance to members during claims
- Standards for handling of premium adjustment amounts between insurers and trustees
- Requirements for trustees to publish plans for the Code implementation and when various aspects of it will be implemented.
“This Code helps automatic insurance function even better for members, as well as providing enhanced protections where members have decided to acquire ‘opt in’ life insurance cover through superannuation,” Minto said.
“It delivers enormous benefits without underwriting and must be preserved as a unique aspect of our superannuation system.”
What absolute tripe !!!!! . A ‘Voluntary’ code of conduct that the large GL insurers don’t really have to abide by. Shame on you ISWG if that is all you could come up with.
Can’t everyone see that they are just biding time, gouging an extra few hundred million while they still can from poor
unsuspecting super members who are none the wiser. Come on Mr Turnbull, its your job to protect the super balances of these members, before it costs you a fortune in pensions down the track.
There is only one solution that will fix this FULL STOP. Default ‘Opt-In’ not the current default ‘ Opt-Out’
Issue sorted.