Complaints Avenue for TPD and Death Insurance Automatically Added by Sunsuper?

Beejay on 24/03/2018 - 10:10

Hi, I found out recently that I have been automatically signed up to TPD and death insurance by Sunsuper for the last ~2 years. I would like to know if there is any complaints avenue to try and get the money I have lost back. I have only been working casually on and off in the last two years whilst being a student, so these insurance premiums have really been draining the relatively small amount of money that was in there. Is automatic signing up to opt-out insurance policies commonplace with super companies? Is there any work requirements for them to be able to automatically sign you up? (i.e. working full time)

I tried chasing it up with Sunsuper, but their response was basically they sent me an email in 2016 (that admittedly I must have missed) that the insurance had started, and since I never opted out, they will not refund any premiums.

It's only ~ $250, but I don't like the fact that I've lost it to unsolicited insurance that I probably wouldn't have been eligible to claim for anyway. Is there any possibility of pursuing this? Or should I write it off as a learning experience?

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Comments

  • holdenmg on 24/03/2018 - 10:21

    It may have been incorporated when you started and the E-mail they sent you
    probably linked to: https://www.sunsuper.com.au/library/media/files/sunsuper/for… that allows you to vary or cancel cover.

    Look at: http://www.sct.gov.au/ and the sample complaints letters at:
    http://www.sct.gov.au/downloads/forms

  • c64 on 24/03/2018 - 10:29

    i think there was some stupid changes to super annuation rules a few years back that let them start charging death insurance and you had to opt out if you didn't want to get charged

    i think all you can do is cancel

    • pierre6 on 24/03/2018 - 13:53

      And to cancel the insurance no one asked for, you can't do it over the phone. You need to send a letter!

      Trying to construct as many hurdles to taking their snouts out of the trough.

      Not to mention the standard shitstorm of insurers not coughing up. Sorry sir, you had a pre-existing condition named life. We're not paying.

      • pierre6 on 24/03/2018 - 13:53

        email won't do either. Must be a letter.

      • bobbified on 24/03/2018 - 14:37

        and to cancel the insurance no one asked for, you can't do it over the phone. You need to send a letter! Trying to construct as many hurdles to taking their snouts out of the trough.

        I used to think that too. Until I worked in the industry. When something happens and the member's family comes in with a confirmation of insurance letter or a benefit statement that clearly has an insured amount, we have to be able to show that the insurance was cancelled by the member previously. Just having the insured amount as nil on our systems is not sufficient as "proof". Hence the need for some sort of definitive record - either a signed letter or completed form with signature or internet form that the member has had to log into with a password is usually acceptable.

        • pierre6 on 29/03/2018 - 19:11

          Makes sense now, thanks for clearing that up!

  • 2jzzzz on 24/03/2018 - 10:38
    +7

    If you would have become permanently disabled in the last 2 years, would you decline the payment as you never signed up for it?

    • MrBear on 25/03/2018 - 14:59
      -1

      Well, he didn't know he had it, so how could he have claimed? So he would have got nil.

    • SlickMick on 25/03/2018 - 18:11

      So I can send whatever I like to you, and help myself to your bank account?

  • Ocker on 24/03/2018 - 10:41
    +6

    Insurance within a super fund operates on an opt-out basis. One of the biggest rorts going, and for those youngster's working part-time the insurance has the potential to wipe out their contributions in no time.

    • Diji1 on 24/03/2018 - 10:52
      -2

      operates on an opt-out basis.

      Seriously?

      I bet Liberal and Labour voters will continue to vote for them despite this additional piece of evidence that the parties are both there to enrich the wealthy at their voters expense.

      And so they'll continue to eat shit like this.

      • bobbified on 24/03/2018 - 11:16

        Seriously?

        On the flip side, it hasn't been all bad - there have been many who have been able to make claims on insurance policies that they didn't intentionally sign up for.

        • Ocker on 24/03/2018 - 18:37

          If they didn't intentionally sign up for the cover then odds-on they never even knew they had it - so how could they have claimed?

        • bobbified on 24/03/2018 - 20:10
          +2

          @Ocker:

          When incidents happen, people may get asked if they have certain insurances and it prompts people to have a look. Some are pleasantly surprised.

          The insurance amount appears on the initial Welcome Letter, Annual (some are even biannual) Member Benefit statements and on the website when members sign in. Insurance premiums are generally deducted monthly so they also appear on the itemised transactions list.

          In addition to the above, the insurance is also reported to the ATO so it appears on the member's MyGov account.

          So anyone who spends a few minutes looking at their account would be able to see that there's insurance attached.

          The above are all government and reporting requirements.

        • Ocker on 25/03/2018 - 14:07
          -2

          "When incidents happen, people may get asked if they have certain insurances and it prompts people to have a look"
          Bit hard if the accident killed you (LOL)

      • jimbobaus on 24/03/2018 - 11:43
        +5

        I came here for this…. you an always count on Diji to post some unrelated political comment

        • Baysew on 24/03/2018 - 13:17
          +1

          I'm voting for my local candidate for the Anti Opt-Out party.

        • Pharos5 on 24/03/2018 - 13:33
          +1

          @Baysew: You're what's wrong with this country. I'm voting for my local member of the Anti-anti-opt-out party.

    • crayner on 25/03/2018 - 07:50

      And as a youngster, if you opt out of insurance cover, it is automatically reinstated once you turn 25!

    • SlickMick on 25/03/2018 - 18:13

      yeah it sucks. I've lost count of how many times I've been caught. I always complain and demand a refund when I cancel, but never been successful

  • chumlee on 24/03/2018 - 10:46
    +1

    Maybe worth having life insurance in case you need to return a phone cover cause it doesn't fit your phone correctly

    • [Deactivated] on 24/03/2018 - 11:39

      You don't speak words of such things. If the unspeakable happens, there will be no return, no exchanges… no refunds.

      He who shall not be named leaves nothing for the coffin nor even the crematorium. When his vendetta has passed, he leaves a wake of ten thousand fliers, inked with the face of his victim, and then nothing. Just darkness.

  • Diji1 on 24/03/2018 - 10:49

    Ombudsman.

    Don't bother wasting time contacting the company other than to make one request which you have already done.

  • DarkOz on 24/03/2018 - 10:51

    For $250 it not worth your time and effort. Just cancel it.

  • dcep on 24/03/2018 - 11:57
    +1

    it's like buying from gearbest and didn't untick the $1 postal insurance included as default

    or, installing apps/programs and didn't untick the "change your default homepage to ozb.com" & "change default search engine to Bing" & "free McAfee antivirus trial".

  • Nutrino on 24/03/2018 - 11:59

    Call your lawyer.

    • bobbified on 24/03/2018 - 12:07

      Call your lawyer

      That won't be necessary - we already have a whole panel right here on OzB! haha :P

    • Gandalf the Thrifty on 24/03/2018 - 17:51

      That would probably cost another $250

  • Oofy Doofy on 24/03/2018 - 12:42

    Just ask them nicely, then if they don't do it, say you will end up moving to another Superfund and leave it at that.

  • Seraphin7 on 24/03/2018 - 14:07
    +3

    My bet is you were put into Sunsuper as a default fund by your employer two years ago when you started working for them. By definition this would have been a MySuper fund (all default funds must be MySuper).

    It's been a while since I've looked at the specific regulations of MySuper, but my memory tells me that they require the trustees of the fund to determine whether insurance will be provided by default (i.e. on an opt out basis) or not offered by default (i.e on an opt in basis). Your fund has obviously chosen the former of these options. There were (and are) all sorts of debates about this when MySuper was brought in back in 2014. The substance of these debates goes well beyond the scope of this forum.

    In the end, like all insurance, it's great when you want to make a claim, but otherwise is a "waste of money". Personally, I'm of two minds on this topic in general terms and whether or not you think it's "fair", this is one of the outcomes of not paying attention to where your superannuation monies are going.

  • JimmyF on 24/03/2018 - 14:55

    While I don't agree with the practice of adding it automatically to an existing policy, and really not 100% sure its even legal to add to an existing policy without your approval. But most policies come with insurance by default. So are you sure it isn't this that you're talking about?

    It's only ~ $250, …………. Or should I write it off as a learning experience?

    Yes, this. $250 over 2 years isn't really worth the hassle of following it up and any 'legal' action will cost you WAY more than this anyhow. You have called a few times and they haven't moved. So it really depends on if you want to fight it and spend hours and hours, lots of stress for $250 gain.

    At the end of the day, read your emails, read your statements way more closely, as it has been on them for the last 2 years.

  • iratepirate on 24/03/2018 - 16:45
    +1

    Also be aware that if your loved ones have to make a claim on this death insurance it is entirely at the trustees discretion as to who gets the payout. Unless you provide them with a binding declaration in writing and renew it every three years the person you think should get the payout may well not.

  • piemaniac on 25/03/2018 - 08:51
    +1

    Insurance cover is important. However, this is an industry fund rort.

    They are paid by the insurers to place the cover within industry funds.

    For young people there is little need for life cover, but TPD cover is important. However, unfortunately you usually can't take out TPD without life.

    In terms of asking for a refund, that's not going to happen. The premiums have been paid to the insurer, not SunSuper. You need to pay attention to your statements, and read all the information that is provided to you when you go into the fund.

    Write this off as a learning experience.

  • louxboo on 25/03/2018 - 09:34

    I've worked in both superannuation and insurance industry.

    As people previously mentioned, insurance is automatically added when you or your employer signs up for a super account unless you opt out. It is a requirement for all super funds to provide insurance automatically in order for them to be compliant with legislation.

    Also, they have previously communicated to you about the features of your account. This is always provided in the Welcome Pack and you have the opportunity to opt out then. Otherwise, if possible, if you have an online account you may be able to cancel it online. Alternatively you have to cancel in writing.

    If you look at your annual statements for your super, you should also consider the performance of the investment option which your super is currently in. I'm assuming you'll be in the MySuper lifestage investment option - if your super performed well you may have earned more than $250 you're fighting for.

  • Sensiekatie on 25/03/2018 - 10:54

    My husband’s employer originally insisted on choosing company - even though this is illegal. Initially Sunsuper, then another. Then he found out he now had a choice around 18 months ago.

    He swapped back to a company with cheaper admin etc. I think it is now Sunsuper.

    A letter came with forms etc - even though already filled out lots. Then a confirmation letter came out with member numbers etc. it was also clearly set out that there were default insurances and the amount if cover and cost. Also instructions on how to change or cancel (a form I think).

    Due to his age (64), we dropped all but a death insurance cover which we nominated at $15000 - thinking this would be useful should he die for funeral costs.

    He is part-time casual and always has been there since 2003 as they don’t do permanent, offer sick leave, holiday pay or any other benefits. So being casual is not an excuse.

    So you have no choice but to blame yourself.

    Always, always check out your superannuation fund and Its fees and charges.

  • Sensiekatie on 25/03/2018 - 11:19

    Following from that, you can cancrl or reduce cover amounts.

    I would suggest determining if premium costs are expensive or comparable.

    I assume you are young and feel as though you are never going to need it. My son was the same. Then he had some cLose friends who experienced serious tragedies first hand (both death and forever injuries).

    What level do your family need to cover costs and debts should be a minimum cover. What do you need for TPD.

    My government superannuation which I could not CHOOSE as QLD has legislation that their employees superannuation is QSUPER.

    There is default cover including income protection insurance at no cost and optional extra cover at a cost. I only found out about it in 2009 and Found it comforting to know should I need it as I have chronic illnesses.

    At age 50 I was forced off with illness and after a lot of hassles eventually got my income protection payments for 17 months. The cover was only 2 Year max.

    I was then unexpectedly determined to be TPD with no notice or warning and sudddenly no income - before the 2 years was up which was very annoying.

    I got my super rolled into another type of account that I could access (taxed of course). My TPD cover was tax free.

    So I was grateful for it and regret not increasing it now!

    My loss is huge - without inflation or promotions I have lost at least $1.5 million in salary plus superannuation contributions.

    My son now has decent life and TPD cover.

    Suggest you have some and increase it as your earnings go up.

    • Eeples on 02/04/2018 - 23:26

      Mmmmm, generally receiving a TPD lump sum (or being TPD) does not effect income protection payments; except perhaps making them easier to get!

      Sounds like they screwed with you a bit; but I suppose not claiming on your IP straight away was an issue for them; as it’s not suppose to be a lump sum but paid like a salary (with PAYE tax applied) and even Centrelink payments reducing it etc.
      Generally.

      Also, I think if you don’t have much Super then TPD and IP insurance are worth getting. But if you have heaps of Super then if you do get TPD you can get your Super out early; as you would meet a condition of release.

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