ASIC Initiates Legal Proceedings Against Australian Super for Claim Delays
ASIC Initiates Legal Proceedings Against Australian Super for Claim Delays
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The Australian Securities and Investments Commission (ASIC) has initiated legal action against Australian Super, the nation's largest superannuation fund, alleging significant delays in processing nearly 7,000 death benefit claims.
These delays, some extending up to four years, have raised serious concerns about the efficiency and fairness of the fund's claims handling processes.
ASIC's Deputy Chair, Sarah Court, emphasized the real-life impacts of such delays, particularly during times of deep distress for beneficiaries. The regulator's action underscores the necessity for superannuation funds to process claims efficiently, honestly, and fairly, as mandated by law.
In response, Australian Super acknowledged the backlog of claims, attributing it to a sharp increase in member deaths post-COVID. The fund has since brought some processing functions in-house to strengthen its ability to deliver services more efficiently and empathetically.
This case serves as a critical reminder for superannuation members to stay informed about their fund's claims processing practices. Ensuring that beneficiaries are aware of potential delays and understanding the steps involved in claims processing can help manage expectations and reduce additional stress during challenging times.
For those considering income protection insurance, this development highlights the importance of choosing providers with a proven track record of prompt and fair claims processing. Engaging with financial advisors and conducting thorough research can aid in selecting policies that offer both comprehensive coverage and reliable service.
Published:Saturday, 10th Jan 2026 Source: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has initiated legal action against Australian Super, the nation's largest superannuation fund, alleging significant delays in processing nearly 7,000 death benefit claims. These delays, some extending up to four years, have raised serious concerns about the efficiency and fairness of the fund's claims handling processes. - read more
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When life takes an unexpected turn, whether due to illness, injury, or other unforeseen events, the financial repercussions can be devastating. This is where income protection insurance becomes an essential component of maintaining financial stability. Income protection insurance acts as a safety net, ensuring that even in times of hardship, your financial obligations can be met, and your standard of living maintained. It provides peace of mind, knowing that your earnings are safeguarded should you become unable to work due to health reasons. - read more
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Insurance Policy Excess: The amount you will have to contribute when you make a claim.
