FSC consultation process on Occupational Exclusions in Group Life Insurance Policies in Superannuation
On 12 August 2021 the FSC initiated a process to consult with the superannuation and life insurance sectors, consumer advocates and other stakeholders with the aim of removing exclusions based on occupational classification within default group life insurance policies in MySuper.
A policy proposal was issued that the life insurance and superannuation industries could implement to address this issue. You can access this policy proposal here.
The FSC would like to thank the organisations that made a submission in response to this consultation period.
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Super Consumers Australia and Financial Rights Legal Centre
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FSC intiative on Occupational Exclusions in Group Life Insurance Policies in Superannuation
Following on from this public consultation the FSC announced on 11 October 2021 that it will be introducing an enforceable FSC Standard to prohibit the use of occupational exclusions and restrictive definitions within default group life insurance policies in superannuation amongst FSC members.
The Standard will prohibit the use of occupational exclusions by the FSC’s superannuation members and prohibit the FSC’s life insurance members from offering occupational exclusions to their clients..
Read the FSC's media release here.