I have previously written about ASIC commencing penalty proceedings against CBUS Super Fund in news titled It’s About Time… and It’s On Again
In the penalty proceedings, ASIC alleged CBUS failed to act efficiently when CBUS handled claims being made for Death Benefits.
ASIC also asserted CBUS failed its Members at their most vulnerable time.
The latest update is that CBUS and ASIC recently submitted documents to the Federal Court confirming they had agreed on the penalty CBUS should face.
CBUS has been ordered to pay a $23.5 million fine after admitting it breached the law over major delays in its handling of insurance claims.
Further, CBUS will also compensate, by a separate $32 million payment, 7,402 people over its claims handling.
The case has been a major part of ASIC’s push to have the superannuation sector improve its claims handling processes.
Documents released by the Federal Court detail that CBUS had “caused financial and other harm” to claimants and beneficiaries.
Some of that harm prevented some beneficiaries from being able to meet mortgage and rental payments, as well as day to day living and medical expenses.
ASIC has said it will continue monitoring the superannuation industry on its claims handling.
Watch this space……