Legal Advice for Compensation Insurance Claims & TPD Payouts

Financial Services Royal Commission Enquiry – Important Information

The Financial Services Royal Commission made two main recommendations regarding superannuation accounts. It's essential you know how they impact you.
Financial services royal commission shield

The Financial Services Royal Commission launched an inquiry into the “Misconduct in the Banking, Superannuation and Financial Service Industry“. Throughout this report, the commission made several recommendations to improve this industry’s transparency and conduct. You should be aware of the following two recommendations:

  1. Implementing a dedicated supervisory body separate from the government and
  2. That stagnant superannuation accounts stop being charged insurance premiums.

Superannuation changes – What you need to know

The government has recently introduced changes to address the second recommendation. After successfully passing the bill, superannuation works on an ‘opt-in’ rather than an ‘opt-out’ basis for specific members. Your super will work on this ‘opt-in’ basis if you are under 25 or have a balance below $6000. This change is designed to help if you are a young, casual, or part-time worker. However, be aware that if your insurance does not operate on an ‘opt-in’ basis, your superannuation may be at risk of erosion.

Is Your Super Eroding Right Now?

Despite the superannuation changes, you will pay multiple insurance premiums if you have more than one super account. These premiums will erode your dormant accounts until you have a balance of less than $6000. Yet, paying multiple insurance premiums provides little benefit to you over a singular insurance policy, even when making an insurance claim.

While tidying up these accounts, however, you will likely encounter repeated barriers even after the inquiry into superannuation misconduct.

In one case, a career-ending injury stopped someone from working who had seven superannuation accounts. This person began consolidating (rolling over) these accounts into one for ease of access. His approved lawyer then contacted the super funds only to be met with constant barriers and refusal to communicate. Only by complaining to the Australian Financial Complaints Authority (AFCA) did the superannuation companies assist the claim process.

How Our Insurance Claim Lawyers Help

At Splatt Lawyers, we genuinely care about your legal rights and are committed to providing superior service. For this reason, we offer no-win, no-fee funding to you can access justice. People choose our skilled insurance claim legal team for their superannuation claims based on our expertise spanning more than 30 years. Know how we might help you by Calling 1800 700 125.

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