One notable case involves a member who, after sustaining a back injury, submitted a claim for income protection in September 2022. Despite initial approval and an expectation of payment within nine days, the member faced a delay of approximately ten months before receiving a response. Such extended waiting periods have led to financial hardships for claimants, including difficulties in meeting daily living expenses and maintaining housing.
The Australian Securities and Investments Commission (ASIC) has initiated legal action against Australian Super, alleging that the fund failed to process thousands of death benefit claims efficiently, honestly, and fairly between July 2019 and October 2024. This legal action underscores the regulatory body's commitment to ensuring that superannuation funds adhere to their obligations and provide timely support to their members.
In response to these allegations, Australian Super has acknowledged the backlog of claims, attributing it to a sharp increase in member deaths during the COVID-19 pandemic. The fund has taken steps to address the issue by bringing the processing of death claims in-house, aiming to enhance efficiency and empathy in handling such sensitive matters.
For members of superannuation funds, these developments highlight the importance of understanding the claims process and the potential challenges that may arise. It is advisable for individuals to maintain clear records of their insurance coverage, promptly report any claims, and seek assistance if they encounter undue delays. Additionally, staying informed about the performance and practices of their superannuation fund can empower members to make informed decisions about their financial security.
