Better communication and improved education levels would go a long way to decreasing the number of complaints raised over risk cover held inside of superannuation funds, according to the chair of the Superannuation Complaints Tribunal (SCT).
Statistics contained in the most recent SCT Quarterly Bulletin show between October and December last year 11.7 per cent of complaints submitted to the tribunal concerned insurance cover, while a further 7.4 per cent of complaints centred on insurance premiums.
“At first glance, the figures suggest that trustees could potentially reduce complaints by almost 20 per cent by better educating members about insurance entitlements and premiums,” SCT chair Jocelyn Furlan said.
“Interestingly, anecdotal evidence suggests that just as many members complain about unwanted insurance as those who complain that they are not covered, but that would just seem to underline the need for improved communication in this area.”
To assist trustees the SCT has identified certain groups it categorises as ‘at risk’ where increased levels of communication could make a significant difference to the number of complaints superannuation trustees have to deal with.
One such group encompasses individuals who hold part-time or casual positions.
Defined benefit members who were approaching retirement were others the tribunal said would submit fewer complaints if more frequent communication was provided from their super fund trustees.
“It is clear to the tribunal that these members need to be better informed about the treatment of their benefits from the date their service ceases to the date their benefits are paid or rolled over,” Furlan said.
The SCT also used its most recent bulletin to highlight problems it is having with trustees who are not providing it with trust deed information needed to properly deal with certain complaints.
“The tribunal asks trustees to identify the executed trust deed by date, and the particular provisions therein, that they relied on when reaching and reviewing their decision,” Furlan said.
“Some trustees seem to disregard this request or provide only limited details, particularly in relation to complaints about matters other than death benefit distributions or total and permanent disablement claims.
“Some trustees respond by simply identifying the most recent deed; others will refer to an unexecuted deed or consolidation.”
She stipulated the deed the SCT wanted to see was the one that was executed and current at the time the incident sparking the complaint occurred.
