TWUSUPER has previously stated its intent to adopt the Insurance in Superannuation Voluntary Code of Practice (the Voluntary Code). The Code had been scheduled to come into effect on 1 January 2022.
Since the development of the Voluntary Code, the majority of the requirements in the code have been overtaken by legislative and regulatory reforms. In addition, many of the elements of the voluntary code have already been implemented by TWUSUPER to improve member experience.
For this reason, the Code Owners announced on 30 June 2021 to rescind the Voluntary Code.
Guidance on issues not covered by legislation, including on improving outcomes for vulnerable members and claims handling for members with life insurance in group superannuation, has been jointly developed by the Code Owners and TWUSUPER will consider this guidance in our interactions with members, noting that TWUSUPER was compliant with all code requirements at 30 June 2021. Our 30 June 2021 Annual Compliance Report is now available.
If you have questions about your insurance please call us on 1800 222 071 between 8am and 8pm (AEST/AEDT) weekdays.
Note: The Code Owners are The Association of Superannuation Funds of Australia (ASFA), the Australian Institute of Superannuation Trustees (AIST) and the Financial Services Council (FSC).
TWUSUPER’s insurance strategy is as follows:
- To provide a basic level of Death and Total and Permanent Disablement (TPD) insurance cover to the transport and logistics industry in a cost and tax-effective environment.
- To provide a base level of cover for death and TPD cover to a membership demographic that is limited as to the cover they may be able to obtain on an individual basis.
- To ensure the basic default insurance offered is appropriate and affordable and that the cost does not inappropriately erode retirement account balances.
- To ensure all communication to members is clear and timely.
- To play a visible role in the claims process, ensuring members receive regular updates on the progress of their claim as well as ensuring a decision is reached in a reasonable timeframe.
- The Fund recognises that costs must be kept to a minimum to prevent inappropriate erosion of retirement savings yet provide options to those who want and need more cover. As a result, the Fund provides alternatives to increase levels of cover, with and without medical assessments. The types of cover a member may apply for includes death, death and TPD cover and Income Protection (IP) cover.
The Trustee is committed to the claims process being transparent, streamlined, proficient and performed within agreed service standards, and that the claims handling process includes appropriate governance arrangements and monitoring.
The Trustee will do everything that is reasonable to pursue an insurance claim for the benefit of a beneficiary if the claim has a reasonable prospect of success through the following processes:
- requesting further information from the member to support their claim as may be required
- liaising with our administrator in order to request further information from our insurers in relation to a claim, or
- liaising directly with the relevant insurer in relation to a claim.
In determining whether or not it is reasonable to pursue a claim, and to what extent, the Fund will have regard to the impact of the likely costs and benefits to all affected members of the Fund. In determining whether a claim has a reasonable prospect of success, as a minimum, it will take into account:
- the facts of the claim
- the insurance policy terms and conditions, and
- legal advice as determined by the Trustee.
The claims philosophy of the involved parties is:
|Fund||To pay all accepted claims promptly when a condition of release has been met in accordance with relevant legislation and the terms of the Fund’s Trust Deed.|
|Insurer||To pay all genuine claims, make prompt decisions while ensuring the customer is at the centre of everything we do.|
|Administrator||To administer claims in line with the Fund’s Trust Deed, policies and business rules, and agreed service standards.|