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ARTICLE · 22 JULY 2020

Superannuation insurance policies: they are not state secrets

Bennett & Philp Lawyers
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Frustration at conduct in the superannuation insurance industry & suggested amendments to the Code of Practice post enquiry.

AustraliaInsurance
John Harvey
John Harvey
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In the post-apocalyptic world following the recent Financial Services Royal Commission (Enquiry), I have dealt with a number of superannuation companies and their insurers concerning insurance held by one of their members. It has been revealing.

One of the recommendations that came out of the Enquiry was for "stale" superannuation policies to cease having insurance premiums deducted from them. Many people who work in industries such as the construction or hospitality industries can accumulate several superannuation policies as they move from employer to employer. There might be a few thousand dollars sitting in a policy which over time gets eaten away by the insurance premiums normally associated with that policy.

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