The Aboriginal Community Benefit Fund No. 2 Pty Ltd has been placed into liquidation, leaving more than 3400 people without funeral insurance policies, the Financial Rights Legal Centre says.

Administrators Robson Cotter Insolvency Group were last year appointed to the fund, owned by Youpla, and a wind-up decision dated March 3 has now been published on the Australian Securities and Investments Commission website.

The Financial Rights’ Aboriginal and Torres Strait Islander-led Mob Strong Debt Help service says it has been inundated with hundreds of calls from distressed and confused policyholders seeking clarification about their policies and possible refunds.

Financial Rights Director of Casework Alexandra Kelly says the Federal Government should step in to ensure policyholders are compensated.

“We understand the Australian Government is committed to closing the gap,” Ms Kelly said. “The liquidation of this fund will have a huge financial impact on thousands of disadvantaged First Nations people who thought they were planning appropriately for their funeral costs.”

Mob Strong is seeking clarity on the future of two other Youpla funds, the Aboriginal Community Benefit Fund, known as Fund 1, and ACBF Funeral Plans Pty Ltd, trading as Aboriginal Community Funeral Plan.