Pensions giant Cbus has apologized after the corporate regulator accused it of failing to timely process $20 million worth of death and disability claims.
The Australian Securities and Investments Commission took the fund to the Federal Court, saying the failure to pay more than 10,000 claims in less than 90 days has caused genuine harm to members and their families.
It also alleged that more than 6,000 claims had been delayed by more than 12 months until the end of 2022, more than half of the fund’s claims at the time.
“We allege that Cbus failed its members and claimants at their most vulnerable time,” ASIC deputy chair Sarah Court said.
‘We are taking this case to protect all those vulnerable Australians trying to access the financial support they are entitled to.
“This is on top of difficult personal circumstances, whether grieving a loved one or suffering a serious injury or illness… the additional anxiety and pain caused by these delays compounded the problems faced by these members and their families. “.
In response, Cbus apologized and said it had initiated a compensation plan for affected members.
He said he had co-operated with the ASIC investigation and would seek to resolve the matter out of court.
“Cbus Super regrets the delays that have occurred in the processing of insurance claims submitted by our members,” according to a company statement.
“Unfortunately this has increased the distress of members and their families.”
It also alleged that more than 6,000 claims had been delayed by more than 12 months until the end of 2022, more than half of the fund’s claims at the time (file image pictured).
“Cbus has implemented a number of measures that are reducing delays and is committed to further improving the management of insurance claims.”
ASIC claimed Cbus failed to inform them of the breaches within 30 days of becoming aware of them, as required by law.
It also said Cbus failed to ensure that its eventual non-compliance report was not false or misleading.
ASIC said it would seek sanctions, declarations, adverse publicity orders and enforcement orders through the courts.
Cbus, which is linked to several unions including the CFMEU, serves more than 920,000 people and manages $94 billion in assets, according to its website.