No need for lawyers when making insurance claim: ASFA
The Association of Superannuation Funds of Australia (ASFA) has urged members not to use a lawyer when making an insurance claim through their super but to go through the process themselves.
Despite roundtable discussions around the fact that lawyers are increasingly getting involved in super issues ASFA said on Monday they can make the process unnecessarily complex and drive up costs.
"We know that many superfund members are confused about how to make an insurance claim within super and some people believe an insurance claim is too complex to tackle without the help of a lawyer," ASFA chief executive, Pauline Vamos, said.
"Super fund trustees legally have to act in fund members' best interests, including in relation to the payment of insurance claims… Between 85-90 per cent of insurance claims, on average, have been paid out."
Vamos noted that most genuine claims are straightforward and can be made directly through a super fund that have staff that can help with the process.
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
