Treasury has launched a consultation paper seeking submissions on occupational exclusions in default insurance offered through MySuper products.

The paper flags four options, including banning occupational exclusions or ensuring members retain their insurance coverage when they change jobs.

Financial Services Minister Jane Hume, who announced plans for the review in June, says the consultation aims to determine the appropriateness of such exclusions.

The review came about after a number of stakeholders expressed concerns that superannuation reforms passed in June requiring workers to hold just one default super account will put vital insurance protection at risk.

Critics of the measure say workers in physically demanding and hazardous jobs are especially vulnerable, since some super-linked group insurance products may have an occupational exclusion list.

“Default insurance offered through MySuper products should come with no surprises,” Ms Hume said.

“The objective of the consultation is to canvas views from interested parties on the extent of the problem arising from occupational exclusions for new members and for members changing jobs and what options, if any, may be required for changes to the current regulatory framework.”

She says the review will focus on default cover in respect of life and total and permanent disability insurance which trustees are required to provide to their MySuper members.

Closing date for submissions is October 14.

Click here for the consultation paper.