Federal Treasury has been unable to clarify conflicting statements about commissions on general insurance being sold through superannuation funds.

Two weeks ago insuranceNEWS.com.au received a written statement from Treasury saying the ban on commissions for products sold through superannuation applied to all insurance.

Last week the National Insurance Brokers Association (NIBA) published a conflicting statement from Treasury saying the commission ban did not apply to general insurance.

“[Treasury] can confirm the application of the ban on commissions to risk insurance is in respect to life insurance (including TPD/income protection),” it said in a written statement to NIBA.

“It is not intended to apply to general insurance. This is also consistent with the scope of the Cooper Review recommendation 5.12.”

In its reply to a question from insuranceNEWS.com.au about general insurance sold to self-managed superannuation funds (SMSF), Treasury said it supports the Cooper Review recommendation 5.12 that “up-front and trailing commission and similar payments should be prohibited in respect of any insurance offered to any superannuation entity, including self-managed superannuation funds”.

insuranceNEWS.com.au has contacted the office of Assistant Treasurer and Minister for Financial Services and Superannuation Bill Shorten for clarification of the conflicting statements.

We asked if the Government is proposing that commissions paid on one sort of insurance product sold through superannuation will be banned, while another will would be allowed.

Commissions on all types of insurance sold outside superannuation are allowed under the proposed Future of Financial Advice reforms.

Mr Shorten was in Vietnam last week and his office cited budget preparations as a reason why the matter could not be clarified before insuranceNEWS.com.au’s deadline today.