CommInsure makes key change to insurance in super
The Commonwealth Bank’s Colonial Superannuation Retirement Fund entity has informed members and their advisers that it will no longer be offering them the option of taking out new insurance cover through their existing superannuation accounts.
In an announcement issued by CommInsure late last week, advisers and members were told that the changes related to new requirements with respect to insurance definitions within superannuation.
It said that from 1 July 2014, “certain insurance terms and definitions must be aligned with similar definitions under superannuation law for new insurance arrangements”.
“As a result of the change, Colonial Mutual Superannuation Pty Ltd has decided that, from 1 July 2014, it will no longer offer Colonial Superannuation Retirement Fund members the option of taking out new insurance cover through their existing super account,” the announcement said.
It said that the exception was Total Care Plan Super.
CommInsure said that, on this basis, advisers needed to cease accepting applications for new insurance on the listed products on and from 5 May 2014 to allow sufficient time for the underwriting assessment to be completed and “to forward applications for new insurance cover to our principal office of administration no later than 5 May 2014”.
It said that applications for new insurance which were not finalised by 30 June 2014 would not be accepted but that applications that increase or decrease existing insurance cover could continue to be accepted.
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