ASIC's Deputy Chair, Sarah Court, emphasized the real-life impacts of such delays, particularly during times of deep distress for beneficiaries. The regulator's action underscores the necessity for superannuation funds to process claims efficiently, honestly, and fairly, as mandated by law.
In response, Australian Super acknowledged the backlog of claims, attributing it to a sharp increase in member deaths post-COVID. The fund has since brought some processing functions in-house to strengthen its ability to deliver services more efficiently and empathetically.
This case serves as a critical reminder for superannuation members to stay informed about their fund's claims processing practices. Ensuring that beneficiaries are aware of potential delays and understanding the steps involved in claims processing can help manage expectations and reduce additional stress during challenging times.
For those considering income protection insurance, this development highlights the importance of choosing providers with a proven track record of prompt and fair claims processing. Engaging with financial advisors and conducting thorough research can aid in selecting policies that offer both comprehensive coverage and reliable service.
