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Group life premiums a growing source of discontent

Complaints about group life insurance premiums have risen steadily over the past five years, according to the Superannuation Complaints Tribunal (SCT).

Such matters accounted for 9% of all complaints to the tribunal in the year to June 30, up from 4% in 2011/12, its annual report says.

This puts it on a par with complaints about total and permanent disability (TPD) claims declined on medical evidence, which accounted for 3% last financial year.  

Delays in TPD claims decisions prompted 4% of complaints.

There were 41 complaints about insurance last financial year, from a total of 1340 lodged with the SCT overall.

Among insurance cases that went to conciliation, most concerned TPD claims denied based on medical evidence, and the deduction of insurance premiums.

SCT Chairman Helen Davis says a rise in insurance complaints poses a challenge for the organisation this year.