Alyssa Lane
QSuper, a Queensland-based not-for-profit super fund, is facing a class action lawsuit from its members, who allege that they were overcharged for their life insurance policies. The lawsuit, which has garnered 15,000 claimants, asserts that QSuper failed to notify its members of important changes to life insurance policy premiums, resulting in thousands of members being charged significantly more than they should have been. This case brings attention to the potential pitfalls of life insurance policies within super funds and the financial consequences for members.
| Characteristics | Values |
|---|---|
| Number of claimants | 140,000-15,000 |
| Allegation | Overcharging for mandatory life insurance premiums |
| Affected members | Members who belonged to one of the accumulation categories defined by sections 22(1) and (2) of the Superannuation (State Public Sector) Deed 1990 |
| Affected beneficiaries | Spouses of fund members who received a transfer of all or part of the fund member's interest in the QSuper fund pursuant to an order or settlement in a Family Law Act 1975 proceeding or a superannuation agreement |
| Date of policy changes | 1 July 2016 |
| Defendant's response | QSuper Board strongly refutes the allegations and is vigorously defending the claim |
What You'll Learn
QSuper members overcharged for life insurance premiums
QSuper, a Queensland-based not-for-profit industry super fund, is facing a class-action lawsuit from its members, who allege that they were overcharged for mandatory life insurance premiums. The lawsuit, which has garnered 15,000 claimants, contends that QSuper breached its obligations by failing to notify members of important changes to life insurance policy premiums relating to occupational rates and members' entitlements to elect standard rates, white-collar rates, and professional rates.
Shine Lawyers, the firm representing the claimants, alleges that QSuper's conduct resulted in significant financial loss for up to 140,000 members. They argue that the super fund's failure to adequately notify its members about changes to premiums and how to obtain cheaper rates led to thousands of members being charged significantly more for their life insurance than they should have been.
The class action specifically targets QSuper's for-profit life insurance business, QInsure Limited. It is alleged that QSuper rorted savings by forcing members to purchase mandatory life insurance premiums through this for-profit entity, resulting in excessive charges.
In response to the allegations, the QSuper board has stated that it strongly refutes the claims made in the class action and is vigorously defending the lawsuit. Meanwhile, the merged entity, Australian Retirement Trust, has declined to comment, citing the ongoing legal nature of the matter.
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QSuper sued over AFCA insurance call
QSuper, a Queensland-based super fund, has been sued by 15,000 super fund members who allege that they were wrongly charged excessive premiums for their life insurance policies. The lawsuit, filed in the Federal Court on 18 March 2022, is being handled by Shine Lawyers, who claim that QSuper breached their obligations by failing to notify members of important changes to life insurance policy premiums. These changes relate to occupational rates and members' entitlements to elect standard rates, white-collar rates, and professional rates.
As a result of these alleged breaches, thousands of fund members were charged significantly more for their life insurance than they should have been and are said to have suffered superannuation investment losses. The lawsuit is seeking compensation for these members, including those who may no longer be with QSuper but held an account with the fund from May 2016 or received a payment after 1 July 2016 from a deceased fund member.
The class action investigation began in 2020, with notices sent to all potential group members advising them of their right to opt out by 15 June 2023. Shine Lawyers expect that more claimants will sign up as the proceeding continues, with a case management hearing expected in October and mediation due in December.
QSuper, now merged with Sunsuper to create the Australian Retirement Trust, has stated that it strongly refutes the allegations made in the class action and is vigorously defending the claim.
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QSuper's for-profit life insurance business, QInsure Limited
QSuper, a Queensland-based not-for-profit super fund, has expanded into the life insurance sector with the launch of its wholly-owned for-profit life insurance company, QInsure Limited. This move is significant as QSuper becomes the first non-profit super fund to establish its own life insurance company, marking a strategic shift in the industry.
QInsure operates as a separate entity with an independent board and has received approval from the prudential regulator. The creation of QInsure allows QSuper to directly offer life insurance products to its members, enhancing their overall financial services offering.
QInsure's product range includes tailored offerings such as additional cover for death and total and permanent disability (TPD). The maximum limit for these benefits has been increased from $2 million to $3 million, providing greater financial protection for QSuper members and their beneficiaries.
However, it is important to note that QInsure's TPD definition has been made stricter. This new definition applies to members who cease work from 1 July 2016 onwards. To assess total and permanent disablement, QInsure's definition outlines specific criteria, including the inability to perform at least three out of seven listed activities of daily working, such as walking, lifting, and communicating.
The launch of QInsure by QSuper has not been without controversy. QSuper is currently facing a class action lawsuit from its members, alleging they were overcharged for mandatory life insurance premiums. The lawsuit, which has gathered over 140,000 claimants, claims that QSuper breached its obligations by failing to notify members of changes to life insurance policy premiums. As a result, members argue they were charged excessive premiums and suffered superannuation investment losses. The outcome of this legal action remains to be seen, with QSuper refuting the allegations and defending the claim.
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QSuper members eligible for compensation
QSuper is facing a class-action lawsuit from its members, alleging that they were unfairly charged excessive premiums for their life insurance policies. The lawsuit is being handled by Shine Lawyers, which alleges that QSuper breached its obligations by not informing members of changes to life insurance policy premiums relating to occupational rates and members' entitlements to elect standard, white-collar, or professional rates. As a result, thousands of QSuper members were allegedly overcharged for their life insurance and suffered superannuation investment losses.
Shine Lawyers is inviting eligible QSuper members to join the class-action lawsuit and seek compensation. To be eligible to join the lawsuit, individuals must meet the following criteria:
- Held a QSuper super account from May 2016 or received a payment after 1 July 2016 from a deceased fund member.
- Held an Accumulation Account with the QSuper Fund on 17 May 2016 and were entitled to Standard Rates, White Collar or Professional Rates.
- Acting on behalf of a deceased fund member.
- Received payment from a deceased fund member after 1 July 2016.
- Received a transfer from a fund member as a result of a settlement or order in a Family Law Act 1975 (Cth) proceeding.
It is important to note that the opt-out period for this class action ended on 15 June 2023. The Federal Court of Australia sent notices to all potential group members, advising them of their right to opt out and lose any right to compensation. However, individuals who missed the opt-out deadline can still discuss their options with Shine Lawyers by contacting them via email.
Shine Lawyers has stated that even if individuals are no longer with QSuper, they may still be eligible for compensation if they held a QSuper superannuation account in May 2016 or received a payment after 1 July 2016 from a deceased fund member.
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QSuper refutes allegations
QSuper, a Queensland-based super fund, has been accused by 15,000 super fund members of wrongly charging excessive premiums for their life insurance policies. The claimants have registered their interest with no-win, no-fee compensation lawyers Shine Lawyers, which is also responsible for the Insignia Financial class action.
Shine Lawyers alleges that QSuper breached their obligations by failing to notify members of important changes to life insurance policy premiums relating to occupational rates and members’ entitlements to elect standard rates, white-collar rates, and professional rates.
As a result, thousands of fund members were allegedly charged significantly more for their life insurance than they should have been and suffered superannuation investment losses. The class action investigation began in 2020 and the claim was filed in the Federal Court on 18 March 2022.
QSuper has refuted these allegations and stated that it is vigorously defending the claim. In a statement, the QSuper Board said:
> "The QSuper Board strongly refutes the allegations made in the class action proceedings brought against it and is vigorously defending the claim."
The QSuper and Sunsuper merger, which created the Australian Retirement Trust with over $230 billion in funds under management and more than 2 million members, is not impacted by the class action. The ART spokesperson commented that the class action is a legal matter and therefore they have no comment.
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Frequently asked questions
Yes, QSuper offers life insurance to its members.
In 2020, a class-action investigation began against QSuper, alleging that they were overcharging members for their life insurance policies. The lawsuit further alleges that QSuper failed to notify members of important changes to life insurance policy premiums relating to occupational rates and members' entitlements to elect standard rates, white-collar rates, and professional rates.
Individuals who may not be members of QSuper anymore but held a QSuper super account from May 2016 or received a payment after 1 July 2016 from a deceased fund member may be eligible to join the lawsuit and seek compensation.
The QSuper board has stated that it strongly refutes the allegations made in the class-action proceedings and is vigorously defending the claim.
The class-action investigation began in 2020, and the claim was filed in the Federal Court on 18 March 2022. Notices were sent to potential group members, advising them of their right to opt out by 15 June 2023. The case is ongoing, with a case management hearing expected in October, followed by mediation in December.
