The Insurance in Superannuation Voluntary Code of Practice (‘the Code’) is the superannuation industry’s commitment to high standards when providing insurance to super fund members.
TWUSUPER supports the objectives and key principles of the Code including:
- our default insurance cover should be appropriate and affordable, and must not inappropriately erode our members' retirement income
- our member communications should be clear, timely and in plain language to help members understand their insurance cover, and
- we will continue to take an active and visible role in managing insurance claims for our members, regularly update them on the progress of their claims and provide decisions on claims in a reasonable timeframe.
TWUSUPER intends to comply with the Code to the extent its provisions align with our members’ best interests. Whilst we already comply with many parts of the Code, we will continue to review our insurance benefit design and processes against the benchmarks set out in the Code. Our transition plan outlines the remaining work TWUSUPER will do to ensure we comply with the Code.
TWUSUPER’s insurance strategy is as follows:
- To provide a basic level of Death and Total and Permanent Disablement (TPD) insurance cover to the transport and logistics industry in a cost and tax-effective environment.
- To provide a base level of cover for death and TPD cover to a membership demographic that is limited as to the cover they may be able to obtain on an individual basis.
- To ensure the basic default insurance offered is appropriate and affordable and that the cost does not inappropriately erode retirement account balances.
- To ensure all communication to members is clear and timely.
- To play a visible role in the claims process, ensuring members receive regular updates on the progress of their claim as well as ensuring a decision is reached in a reasonable timeframe.
- The Fund recognises that costs must be kept to a minimum to prevent inappropriate erosion of retirement savings yet provide options to those who want and need more cover. As a result, the Fund provides alternatives to increase levels of cover, with and without medical assessments. The types of cover a member may apply for includes death, death and TPD cover and Income Protection (IP) cover.
The Trustee is committed to the claims process being transparent, streamlined, proficient and performed within agreed service standards, and that the claims handling process includes appropriate governance arrangements and monitoring.
The Trustee will do everything that is reasonable to pursue an insurance claim for the benefit of a beneficiary if the claim has a reasonable prospect of success through the following processes:
- requesting further information from the member to support their claim as may be required
- liaising with our administrator in order to request further information from our insurers in relation to a claim, or
- liaising directly with the relevant insurer in relation to a claim.
In determining whether or not it is reasonable to pursue a claim, and to what extent, the Fund will have regard to the impact of the likely costs and benefits to all affected members of the Fund. In determining whether a claim has a reasonable prospect of success, as a minimum, it will take into account:
- the facts of the claim
- the insurance policy terms and conditions, and
- legal advice as determined by the Trustee.
The claims philosophy of the involved parties is:
|Fund||To pay all accepted claims promptly when a condition of release has been met in accordance with relevant legislation and the terms of the Fund’s Trust Deed.|
|Insurer||To pay all genuine claims, make prompt decisions while ensuring the customer is at the centre of everything we do.|
|Administrator||To administer claims in line with the Fund’s Trust Deed, policies and business rules, and agreed service standards.|
Further information and fact sheets
The following fact sheets provide further information about the Fund's insurance offering and claims process:
- Key fact sheet for industry members
- Claiming a death benefit fact sheet
- Claiming a TPD benefit fact sheet - before 27 October 2018
- Claiming a TPD benefit fact sheet - after 27 October 2018
The Insurance in Superannuation Voluntary Code of Practice started on 1 July 2018.
TWU Nominees Pty Ltd ABN 67 002 835 412, AFSL No 239163 (‘TWUSUPER’, ‘our’, ‘we’) intends to comply with the Code to the extent that the Code’s provisions are in line with the best interests of our members. While we already comply with many aspects of the Code, we will continue to review our insurance benefit design and processes against the new benchmarks set out in the Code.
The Transition Plan sets out the key dates by which TWUSUPER intends to implement any outstanding requirements of the Code. These dates will be updated, should there be any changes.
TWUSUPER’s insurance philosophy includes a focus on benefit design and providing a base level of cover for death and TPD cover that is appropriate and affordable, and at a cost that does not inappropriately erode retirement account balances.
TWUSUPER intends to comply with the remaining requirements of the Code as early as possible, but no later than 1 January 2022 to allow time to work with our service providers, existing contractual arrangements and current legislative changes.