Move for super industry code on insurance claims
The Association of Superannuation Funds of Australia (ASFA) has confirmed that a process is on foot aimed at achieving a code of conduct covering the handling of insurance claims within the superannuation industry.
What is more, ASFA chief executive, Pauline Vamos, said that process was aimed at developing a "coalition of the willing" which included lawyers.
Her confirmation of the process followed comments by industry lawyer, John Berrill, that a code of conduct attaching to the handling of total and permanent disability (TPD) claims by superannuation fund members could be a means of driving down costs and limiting the impact of lawyer involvement.
Berrill told a roundtable conducted by Money Management's sister publication, Super Review, that it was unrealistic for the industry to seek to exclude lawyers from the claims environment.
"In my view you cannot regulate whether someone can or cannot go to a lawyer to assist with superannuation claims. And there is a fundamental power imbalance between members and funds and insurers," he said.
"What I think this leads to is that this industry is crying out for a code of practice for funds, insurers, and representatives of clients such as lawyers, Berrill said.
He said he had produced such a code of practice and had given it to the ASFA and other industry bodies last year but that it had "gone no-where".
However, Vamos said that not only was the matter being pursued, but that it was being pursued across boundaries including seeking the involvement of the various state law societies.
"There is a great deal of work being done on this looking for a viable outcome," she said.
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