According to ASIC, AustralianSuper took an exceedingly long time, ranging from four months to four years, to assess a significant number of death benefit claims—at least 6,897 of them. Furthermore, the superannuation giant is said to have delayed payments to the families of at least 752 deceased members, even when all necessary information was available. For instance, in one highlighted case, the payment was delayed for 1,140 days.
Additionally, there were reported issues with the delivery of claim forms, with AustralianSuper taking anywhere from 15 to 213 days to provide these forms in 254 instances, as alleged by ASIC.
Sarah Court, ASIC's Deputy Chair, stated, "At its heart, this matter is about protecting vulnerable Australians and their families." She highlighted the importance of timely processing of death benefit claims, as delays can exacerbate the distress and anxiety of grieving family members.
These allegations bring to light significant concerns about the efficiency and fairness of AustralianSuper's claim processing, with ASIC placing emphasis on the impact these delays have on grieving families.
The allegations against AustralianSuper touch upon critical issues surrounding the management of death benefits in the superannuation sector. Delays in processing and payments can severely affect families who are financially dependent on these benefits, intensifying their emotional distress during already challenging times. The case underscores the broader need for transparency and accountability within super funds in Australia.
The lawsuit sets a precedent for other superannuation funds to audit and assess their own claim processing procedures to ensure they comply with regulations. If ASIC's claims are upheld, AustralianSuper may face significant penalties and be required to revamp its claim handling approach. This case could instigate a wider scrutiny across the industry, prompting regulatory reviews and potential reforms to safeguard member interests more effectively.
