POWERED BY MOMENTUM MEDIA
Insurance exclusion review leaves hazard workers at risk
A Treasury review into exclusions in superannuation insurance, which is of unspecified outcome or timing, will do nothing to mitigate the immediate impacts for workers in hazardous sectors, according to industry fund Cbus.
The building, construction and allied industries fund said the review, which was part of the Your Future, Your Super bill offered no security for the 2.7 million Australians that worked in physically demanding and hazardous occupations.
It said a review would not negate the fact that once implemented, the government’s stapling legislation would lead to serious consequences for workers moving into hazardous jobs.
Justin Arter, Cbus chief executive, said stapling to a fund without industry specific insurance tailored to hazardous jobs could see workers suffer financially if that cover did not protect them adaquetely.
“If the government’s ‘stapling’ proposal does commence 1 November 2021, surely hazardous workers should be made exempt until at least after the exclusions review is complete,” Arter said
“A Treasury review of unspecified outcome or timing will do nothing to mitigate the immediate impacts for workers in hazardous sectors.
“Within months workers in hazardous occupations are at risk of being stapled to a fund containing exclusions or unfavourable terms and conditions because their existing insurance cover has not been tailored to their new job.
“Despite paying insurance premiums, stapled members in heavy blue-collar occupations or people working at heights may not be covered.
“Members and their families will likely only discover these exclusions when tragedy has struck – and they try and fail to make a claim against cover they believed they had.”
Recommended for you
The insurance company has joined this year’s awards as a principal partner.
The $135 billion fund has transitioned away from TAL Life Insurance following an “extensive tender process”.
The $80 billion fund is facing legal action over allegedly signing up new members to income protection insurance by default without active member consent.
In a Senate submission, the Financial Services Council has once again called for further clarification that the government will assess the consumer outcomes of group insurance against the enshrined objective of superannuation.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
