Cbus reports surge in TPD claims

Big construction industry superannuation fund Cbus has reported a significant increase in insurance claims over the past financial year whilst warning that members stand to be disadvantaged by the new rules around insurance inside superannuation.

The fund has pointed to members struggling financially and to an increase in members claiming on their disability insurance cover due to accident or industry.

It said that Cbus had paid out almost $300 million in insurance claims last financial year – an increase of $40 million over the previous corresponding period.

Cbus chief executive, Justin Arter said the record $300 million in claims pay-outs was driven by an increase in members making total and permanent disability claims.

“More and more people are struggling financially in the current environment and injury and illness magnifies the financial risk,” he said. “For workers in hazardous industries insurance through your super can be the difference between a worker losing their home or not when tragedy strikes.

“It can mean the difference between providing a basic or comprehensive rehabilitation from injury.”

Arter said recent legislative changes meant that Cbus was one of the few funds offering automatic insurance to young or low account balance people in hazardous or high-risk jobs through their super.

“More and more we are seeing apprentices and young people on construction sites without any level of insurance cover,” he said.

“That is why we are suggesting people check if they have the right insurance cover and whether it covers hazardous or dangerous occupations. People are often shocked when they find out they aren’t covered, or are unlikely to be covered.”