Total and Permanent Disability Charged by Super Company without My Permission for 3 Years

TAN on 05/03/2021 - 17:00
Last edited 05/03/2021 - 17:07 by 1 other user

Hi All Hope you all will have a great weekend. I am expecting your valuable advice on the below

I have noticed today that Super company have been charging TPD Total and Permanent Disablement monthly for 3 years without my authority/permission.

I rang them to clarify this and I have been told 2 different reason ( one by online chat and other one by over the phone)

  1. My previous employer was contributing for TPD and when transferred to my current employer no contribution and been charged to my account
  2. Other reason given by over the phone that the option/package I have at the movement is defaulted with TPD and It has mentioned in the welcome pack.

I haven't receive the Welcome pack from them when I move from one employer to another by mail and also I haven't receive their statement by email for the last 4 years

I tried to check my balance online and found that they have been charging since 2018.

They said that they can cancel from this month and no refund will be issued for the paid premium. I argued that I haven't given the authority to TPD cover or I haven't been notified. They have raised this issue with internally and let me know the outcome.

The insurance cover also from the same super company and the money transferred internally , If it has paid to third party then it is impossible to recover the insurance payment ,

Cheers

Financial

Comments

    • Drakesy on 05/03/2021 - 17:46

      Yes, i keep mine in gold coins stashed under my bed so the capitalist bastards can't touch it. /s

      • whooah1979 on 05/03/2021 - 17:49

        As long as people are happy with their assets getting a measly 8% return p/a.

        • Drakesy on 05/03/2021 - 17:52

          Plz share how to get >8% on my super. The gold coins are getting uncomfortable to sleep on.

          • whooah1979 on 05/03/2021 - 17:57
            -4

            @Drakesy: I don't waste time on DYOR into super returns. I take it out at every opportunity.

            It's designed to take money from the working class to pay the fat cats at the top and their management team.

            • Drakesy on 05/03/2021 - 17:59
              +1

              @whooah1979: Question still stands though.
              (I don't doubt that super funds though are paying fat wages to a priveleged few though for the right to build/lose our retirement funds)

    • deme on 05/03/2021 - 21:41

      DYOR BUY BITCOIN AT ATH AND BAG HOLD can only go up!!! I need you to buy Bitcoin to get me out from the last time I bought at an all time high and now I cry to sleep holding a worthless bag of digital coins.

      Serious though:
      If you want to fix your super go to hostplus indexed balance, fees are 0.06%pa

  • Jugganautx on 05/03/2021 - 17:11

    Cbus rorted me the same way for 2 or 3 years… ended up taking just over $600 in premiums for $200k death and disablement.

  • [Deactivated] on 05/03/2021 - 17:40
    +1

    That is pretty standard and quite often isn't bad value as insurance goes. It is so widespread that I doubt it is deemed illegal.

    Make sure your beneficiary is well chosen, as many people just choose anyone they like but that can get more complicated.

    • mbck on 05/03/2021 - 19:19
      -1

      Yeah the bs thing is, the insurance were compulsory. But people don't put beneficiaries. And when they die, guess who gets the money?

      • Kenb0 on 05/03/2021 - 21:18
        +2

        Ummm…the deceased’s estate gets it then?

        • Tleyx on 06/03/2021 - 23:55
          -1

          insurance beneficiary isnt decided by the estate. so no

          • peter05 on 07/03/2021 - 04:31

            @Tleyx: genuine question, if it's not determined by the estate then who receives the money? i'm fairly certain the insurance company pays up and doesn't just pocket the money, as long as they're informed of the passing

            • Tleyx on 07/03/2021 - 11:13

              @peter05: No the super fund decides unless you have nominated a defined benefit.

              It usually lines up but may not. A defacto living together may be found as the beneficiary where you might want it to go to your parents if you are not married no kids

      • blueyez on 08/03/2021 - 11:50

        The trustees of the super fund will make the decision based on what they can find out about family circumstances (like kids) and financial dependents. The only thing that sucks is that superannuation falls under different legislation so even if someone has a will, it generally doesn't cover super - most people don't realise this unless they engage a financial advisor or solicitor that tells them this.

  • Almost Banned on 05/03/2021 - 17:42
    +2

    Life and TPD are pretty standard cover in most super funds nowadays AFAIK.

  • Drakesy on 05/03/2021 - 17:51
    +2

    Hokay, so this was how the super funds were rorting the system for years.
    I got inquisitive into my super from day one and realised that at my age it was definitely not worth it given the premiums which were smashing my super contributions to an almost negligible amount.

    The site here

    Clarifies the changes that were made in response to your exact issue with the auto opt in system.
    Unfortunately auto opt in insurance before 2019 was technically legal, as crap as it may be, and it was your responsibility to check the superannuation breakdown each year.

  • Ocker on 05/03/2021 - 18:43
    +1

    You normally need to "opt out" otherwise they will "opt" you in

  • djones145 on 05/03/2021 - 20:58
    +1

    off the internal complaints department, with the details u outlined in this pist
    then if that fails, afca

    the fact u didn't get the welcome pack, pds, no statements etc, u should he able to get us money back

    throw a couple of buzz words like systemic, significant issue/incident, something that afca should investigate, customer first, conduct risk, and they will pay up

    • Drakesy on 05/03/2021 - 23:15

      Somehow I don't think that'll cut it

      • djones145 on 06/03/2021 - 21:06
        +1

        I work in the field
        throw those buzz words and it'll stick
        direct it to the CEO

        if afca gets involved and seems it a systemic incident, they have to look back at the history (at least 7 uears) and see if they have similar cases and compensate
        and fine them

        they don't want afca to seem it systemic
        it's painful

  • vikvance on 05/03/2021 - 22:45

    Nassim Taleb gives a brilliant example in one of his books to highlight the unfortunate human capacity to blindly ignore perils.

    "Imagine a turkey on farm that is fed every day. Every single feeding will firm up the bird’s belief that it is the general rule of life to be fed every day by friendly members of the human race. Then, one day, on the afternoon of the Wednesday before Thanksgiving, something unexpected will happen to the turkey. It will incur a revision of belief."

    My point is that death & disability are a part of life. And when they strike, they can cause a catastrophe for the person and his or her dependents.

    It is myopia to go around believing that you are immortal and will never suffer death or disability, and don't need insurance.

    • Drakesy on 05/03/2021 - 23:16
      +1

      Its also myopia to think that insurance companies/superannuation companies are there for you. They've run the numbers and are making a killing off you and mandatory sign ups.

      Also the fact that they were signing up casual high school and uni students to this scheme with zero beneficiaries just to get there hands on more money shows how low they'll stoop

  • jimbobaus on 06/03/2021 - 06:54

    Almost all super funds have an opt out system for insurance. It is automatic unless you ask them to remove it.

    When I switched to Hostplus I had to call to ask them to remove it as it was automatically included.

    You will find it’s in the conditions you agree to when opening the fund that its automatic. So technically they had your permission.

    There has recently been a law change that states if your fund does not receive contributions for you for a set period of time they have to automatically cancel the insurance after giving you notice.

  • pndl on 06/03/2021 - 21:10

    Default insurance is actually pretty good value. Try getting it outside of super, answer a whole bunch of underwriting questions and pay triple in premiums.

  • blueyez on 08/03/2021 - 11:45
    +1

    If your employer set up the super fund for you - by law the superannuation provider must offer default insurance cover on your account.

    Your annual statement would show you this.

    Insurance is opt-out - contact your provider to cancel it. Slim to no chance of getting premiums refunded as it's your responsibility to check your annual statement (regardless of any issues- but you can try fight it with the reasons you've stated)

    Note that insurance generally is a good thing to have and if it's default there are no exclusions or loadings. If you choose to cancel and re-apply in future the insurance company will want your medical history and can exclude things from being covered or charge you a higher premium than default.

  • brad1-8tsi on 08/03/2021 - 15:41
    +2

    4 years of no statement (possibly no communication at all) and you didn't chase it it up? FFS… Suck it up due to your own laziness.

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