Australians are mistakenly convinced that making an insurance claim through a super fund is “too complex” to do without a lawyer, says the Association of Superannuation Funds of Australia (ASFA).
According to ASFA chief executive Pauline Vamos, there are “many misconceptions” surrounding the process for making insurance claims within super funds.
"We know that many super fund members are confused about how to make an insurance claim within super and some people believe that making an insurance claim is too complex to tackle without the help of a lawyer, for example,” Ms Vamos said.
"However, the majority of the time claims are paid in a timely manner and they rarely require legal input. Often, involving lawyers can drive up the costs and complexity of the process unnecessarily,” she said.
In order to debunk these “misconceptions”, ASFA has released a booklet, entitled Super Guru, which is aimed at guiding people through the process of making an insurance claim.
Ms Vamos added that “most genuine” claims are straightforward and can be made directly through a member's super fund.
"Super fund trustees legally have to act in fund members' best interests, including in relation to the payment of insurance claims,” she said.
"Between 85 to 90 per cent of insurance claims, on average, have been paid out."
The booklet consists of an eight-step guide to the insurance claim process, and information on what a person can do if their claim is not approved but they disagree with the decision.
SUBSCRIBE TO THE IFA DAILY BULLETIN
15 Dec 2017AIW Dealer Services enters EUBy Staff Reporter
15 Dec 2017New CEO appointed at Centrepoint AllianceBy Staff Reporter
15 Dec 2017FASEA education pathways provide certainty: O’DwyerBy Killian Plastow
14 Dec 2017AUSTRAC adds to list of CBA allegationsBy Killian Plastow
15 Dec 2017Get ‘independent financial advice’: Joe HockeyBy Aleks Vickovich
14 Dec 2017‘Forward-thinking’ advisers drive mFunds growthBy Aleks Vickovich
- view all