Changes to insurance provided by super funds

Thursday 24th January 2019 0:00
We’re writing to you because your life insurance and TPD insurance is at risk due to proposed new laws currently being debated in Canberra.
You currently get insurance automatically when you sign up to superannuation with Cbus. A few simple eligibility questions and it’s there.
Using the buying power of our industry, your super fund, Cbus, has been able to negotiate a good deal for employees and their families:
  • Coverage for all occupations in our industry working above 10 metres, and other hazardous conditions.
  • Recognition that if you’re injured in construction, you might not be able to get another job elsewhere easily.
  • Better payouts that are easier to access.
But new legislation would stop Cbus providing automatic life insurance and TPD cover to members when they sign up.
  • Workers will have to apply for insurance with detailed forms and requirements.
  • Many workers won’t qualify for insurance or will have exclusions for pre-existing conditions.
  • Insurance premiums will go up for all members, because there will be fewer people covered and a more complicated scheme.
  • Coverage could become less generous, and have some restrictions applied.
Even with active shop stewards and a good employer, risks in construction are higher than other industries. You work hard and you and your family need protection from these risks in the form of a proper insurance policy at a good price, that’s easy to get and is there when you need it.
If the Government wants to make it fairer for people who don’t think they need insurance, they shouldn’t make it harder for people who do need the cover.
This change should not apply to hazardous industries where insurance needs are different.
You can tell your local MP to vote against this legislation or create an exception for hazardous industries by getting in touch with them by phone.