The rationale for this recommendation is based on Commissioner Hayne’s finding that insurance contracts “…can often be difficult for the average consumer to navigate and understand.”<\/p>\n
In his final report, the Commissioner added that subtle differences in definitions, terms and exclusions from one policy to another can make the task of comparing policies particularly challenging. He noted this can affect:<\/p>\n
- \n
- When an individual can claim under a policy<\/li>\n
- The cost of insurance premiums<\/li>\n
- How much superannuation an individual will have at retirement<\/li>\n<\/ul>\n
With these issues in mind, the Government’s consultation paper<\/a> is seeking industry feedback around fifteen questions under five different sections:<\/p>\n
- \n
- Standardising TPD and other terms, definitions and exclusions:<\/li>\n<\/ul>\n
![\"\"](\"https:\/\/riskinfo.com.au\/news\/files\/2019\/03\/190328-Universal-Definition-Questions-Set-1.png\")
<\/a><\/p>\n- \n
- Impact on premiums:<\/li>\n<\/ul>\n
![\"\"](\"https:\/\/riskinfo.com.au\/news\/files\/2019\/03\/190328-Universal-Definition-Questions-Set-2-and-3-2.png\")
<\/a><\/p>\n- \n
- Improving consumers’ understanding of insurance in superannuation<\/li>\n<\/ul>\n
![\"\"](\"https:\/\/riskinfo.com.au\/news\/files\/2019\/03\/190328-Universal-Definition-Questions-Set-4.png\")
<\/a><\/p>\n- \n
- Merits of prescribing minimum, maximum or set levels of cover<\/li>\n<\/ul>\n
- Improving consumers’ understanding of insurance in superannuation<\/li>\n<\/ul>\n
- Impact on premiums:<\/li>\n<\/ul>\n
- Standardising TPD and other terms, definitions and exclusions:<\/li>\n<\/ul>\n
![\"\"](\"https:\/\/riskinfo.com.au\/news\/files\/2019\/03\/190328-Universal-Definition-Questions-Set-5.png\")
<\/a>In its release, the Government notes its focus is on placing the interests of superannuation members first, ahead of the interests of the superannuation funds themselves.<\/p>\n