ASIC Enforcement Action: Claims Handling

Licensees authorised in relation to claims handling, insurance products or superannuation have been put on alert.

ASIC recently sued United Super Pty Ltd as Trustee of CBUS alleging that CBUS failed to:

• process death benefit and total and permanent disability ("TPD") claims made by its members within a reasonable time-frame;
• properly assess the delays encountered by the subcontractor responsible for processing the claims;
• take prompt and appropriate action when CBUS became aware of the delays; and
• properly identify the risks that its claims processing system posed to members and claimants.

As a result, ASIC claims that CBUS failed to:

• act efficiently, honestly and fairly in the handling of its members' claims for death benefit payments and TPD insurance payments (sections 912A(1)(a) and 912A(1)(5A) of the Corporations Act;