Industry fund Rest, which has more than 1.9 million members, is entering a memorandum of understanding with TAL to provide life insurance to Rest members from 1 December 2019.
Rest and TAL, subject to final negotiations, will now complete work on a new insurance offering to commence on the same date.
“Rest is committed to providing affordable and flexible insurance as part of superannuation to our members, and we believe TAL’s insurance offer represents real value for members,” Rest chief executive Vicki Doyle said.
“We insure around 1.5 million people, or around one-in-eight working Australians. Our scale allows us to negotiate and provide insurance cover at the best-possible value to members.
“Rest is also continuing to invest in innovation and technology to improve the member experience, and we believe TAL is the right insurance partner to help us meet this strategic goal.”
Rest embarked on a comprehensive review of its insurance arrangements and said more information will be provided to members and the public about the new insurance offering once it has been finalised.
“Our new insurance offering with TAL will be designed to provide simple, flexible cover, representing value for members’ money,” Ms Doyle said.
Rest’s insurance has been provided by AIA Australia since 2004. These arrangements will remain in place until 30 November 2019.
“AIA Australia is a valued partner and, together, we’ve worked to provide insurance cover to millions of Rest members during the past 15 years. Importantly, AIA Australia has supported thousands of Rest members at what can be an extremely difficult time. We thank them for their valued partnership over the last 15 years and their input during the tender process,” Ms Doyle said.
“In recent years, we have worked with AIA Australia to simplify our insurance policy wordings and rules to make them more understandable to members, and streamline the claims process to support faster claims decisions.
“We will be working closely with TAL, AIA Australia and our administrator AAS to ensure a smooth transition of our insurance arrangements.”
REST had a nasty clause which denied IP cover to members whose employer allowed them to work from home after childbirth. “Must work in employer premises”. A throwback to REST retail origins. Will TAL keep that little “nasty” ? As to a “panel ” that would lose the advantage insurers gain now by applying KPIs to TPD claims ie, $1m TPD claims per quarter or TPD premiums increase
As an advisor I am surprised Industry funds are still only allowing one insurer on their panel. Why not open up your Approved list and allow all insurers on your panel so that clients have choice. The law now states that their should be choice and decisions should be made in the client’s best interest…not in the amount of money the industry fund will get in kickbacks from one particular insurer. This just leads to less than desirable outcomes for the consumer. Industry funds think to rethink their model and allow all insurance companies on their panel and allow internal advisors to be able to provide appropriate advice rather than restricted advice.
I’ve been stuck in a legitimate IP/disability claim with REST/AIA–> [i]for SIX YEARS! [/i][i][/i]Their combined incompetence is unmatched. Ombudsman is handling it now. It’s been devastating to deal with them both, each blaming the other. Such a con-man act, it’s criminal.
Good move if you ask me – I agree with Steven on the fitness aspect and have also had bad experience on claims
I wonder if they have looked at another well know Industry Fund which uses TAL and noticed that their TPD definition allows the trustee to also factor in further training, education or experience to be considered in making the TPD assessment. Only reason that clause was added is to reduce claims. If REST follow suit with this clause, then it must have been a successful addition as a mechanism of keeping cost down for the other industry fund (which reading between the lines then means its a mechanism to deny claims).
Comparison would be interesting. REST will now have TALs famous ( infamous) (Oz Super) REHABILITTION TEST for TPD. Sure slows up the TPD cl;aims
AIA should focus on reducing premiums rather than the fitness programmes and health/lifestyle course they seem to be pushing or at least were a little while back.
Stop all that and get premiums down.
I would back AIA for claims paying before I would tal, members will be waiting.[c[color=blue][/color]olor=blue][/color]
Wait until after the Protecting Your Super impacts this space. From 1 July 2019 Rest inactive members (some 500K) cover could lapse. The decision to change insurers mid stream could come back to bite them big time. You pay for what you get when it comes to insurance. Will now be looking to see if TAL adds in more onerous exclusions
Funny that , my cover with an industry fund MTAA went up 40% the year before last !!!!
Would be interesting to compare the two contracts once the new cover has been implemented. I would be very surprised if the quality of the cover even remains the same, let alone increases.