POWERED BY MOMENTUM MEDIA
Member confusion over opt-out super insurance
The Superannuation Complaints Tribunal (SCT) has pointed out that many people making complaints about superannuation-related insurance believe it should be "opt-in" and that therefore they should be compensated for premium deductions.
The SCT's concern about the issue has been revealed in its latest quarterly bulletin in which Acting Chairperson, Jocelyn Furlan, explains why the body has issue a new brochure explaining what the SCT can and cannot.
"The Tribunal … cannot provide a remedy where the complaint is about the impact of the design of a fund on a complainant," she said. "For example, some superannuation funds offer insurance to members on an ‘opt-out' basis which means that the fund does not require the member's authorisation to provide insurance and deduct insurance premiums from the member's account." "Some complainants are of the belief that insurance should be ‘opt-in' rather than ‘opt-out' and have an expectation that the Tribunal will order a refund of insurance premiums deducted," Furlan said.
She said it was worth noting that, while the Tribunal had no jurisdiction to change the design of a fund, it could deal with complaints about the adequacy of the superannuation provider's disclosure about the insurance arrangements and premiums.
"This may include whether the amount of cover and the premiums that would be deducted from the account and the ability to ‘opt-out' of the cover were disclosed," Furlan said.
Recommended for you
Australian retirees could increase their projected annual incomes between 3 and 51 per cent by incorporating personal and household data into their retirement income strategies, according to new research.
The best interests duty and new class of adviser didn't make the cut for the pre-election DBFO draft bill; however, ASFA has used its submission to outline what it wants to see from the final package.
The peak body stressed that the proposed financial advice reforms should “pass as soon as possible” and has thrown its weight behind super funds providing a greater level of advice.
Economists from the big four banks have all predicted the RBA to deliver another rate cut during its July meeting; however, some admit the decision will be a close call.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
