Australia’s largest superannuation fund is being accused of delaying death benefits claims for nearly 7000 of its policyholders.
The Australian Securities and Investments Commission (ASIC) has started proceedings against AustralianSuper in the Federal Court.
ASIC Deputy Chair Sarah Court said it would be alleged that between July 2019 and October 2024, AustralianSuper failed to process death benefit claims “efficiently, honestly and fairly” when it took between four months and four years from the date the claim form was returned to assess at least 6897 death benefit claims.
Ms Court said ASIC also alleges AustralianSuper failed to pay member’s benefits as soon as practicable after the member’s death in respect of at least 752 members.
She said in one case, despite having all the information required to pay the benefit, it took AustralianSuper 1140 days to make the payment, while others took 438, 412 and 366 days.
“At its heart, this matter is about protecting vulnerable Australians and their families.
“It is vital that death benefit claims are processed in a timely manner. Delays are likely to cause further pain and anxiety to people who are already suffering from grief, making what is already a difficult time even harder.”
Ms Court said member services failures in the superannuation sector remained an enforcement priority for ASIC.
