On 18 December 2017, three superannuation industry associations (Australian Institute of Superannuation Trustees, Association of Superannuation Funds of Australia and the Financial Services Council) released the Insurance in Superannuation Voluntary Code of Practice (the Code). The Code is voluntary and will come into effect from 1 July 2018. It is a first for the industry and sets standards that will provide greater understanding, clearer accountability and consistency of delivery across the superannuation industry. The Board of Legal Super Pty Ltd resolved to adopt the Code at its meeting on 3 March 2018. Adopting the Code, has affirmed legalsuper’s commitment to the highest standards when providing members with insurance cover.
The improvements and protection afforded by the Code include:
- A framework that sets expectations about the maximum amount of superannuation contributions that should be used for automatically provided life insurance premiums
- Simpler and clearer processes for members to opt out of automatic life insurance
- Simplified disclosure and improved superannuation fund member communications about insurance
- Requirements to reduce multiple insurance policies by cancellation of some insurance cover, after funds contact members, in cases where member accounts are inactive and insurance exists
- Provision of better and more timely assistance to members during claims
- Standards for the handling of premium adjustment amounts between insurers and trustees.
For eleven years, legalsuper has worked closely with its insurer (OnePath Life) to combine our deep and growing understanding of our members’ insurance needs with our insurer’s capacity to work with us to design and deliver a range of insurance options tailored for the particular needs of members of the legal community. legalsuper’s specialisation in the legal community means our membership is more homogenous compared to most other super funds that serve diverse occupational groups. By 31 December 2018, the Code requires legalsuper to include on its website a transition plan setting out how it will become compliant with requirements of the Code. The Code is then required to be implemented by 30 June 2021. Please contact legalsuper on 1800 060 312 or at email@example.com if you have any questions.