Cbus announces better insurance deal for members

7 July 2017

Cbus members welcomed a new insurance deal that will see premiums per unit of Death & TPD insurance cover for most members go down by 25 per cent while total and permanent disablement (TPD) cover increases for the majority.

Speaking at the Annual Member Briefing in Melbourne today, Cbus CEO David Atkin said reducing insurance premiums would ultimately boost the retirement savings of members.

“Cbus, through our partnership with TAL, is delivering insurance that meets our members’ needs on a cost, coverage and accessibility basis,” Mr Atkin said.

“Our members work in some of the toughest conditions of any industry which is why being able to access affordable insurance through superannuation is important to them.”

Mr Atkin said that default cover for 15 – 20 year olds will also be reduced in an industry leading move that recognises the fact that young people are less likely to have dependants or mortgages and that more super savings earlier is critical over the long term for retirement balances.

“We have worked with TAL to modify the insurance provided and we have listened to our younger members. Recognising the need to maximise their super savings early, we have moved to reduce their default insurance costs from $7.16 per week to $2.68,” Mr Atkin said.

“These changes recognise the different needs of our members at different stages in their lives with a focus on ensuring they’ve got the cover they need while maximising their retirement outcomes.”

Mr Atkin said that while premiums and cover were important at one end, the claims process and outcomes for members were just as critical to the Cbus offering.

“Our view is insurance cover for members is important and valuable and our philosophy is that legitimate claims should be paid. Over the longer term around 80% of our TPD claims have paid,” Mr Atkin said.

“We are committed to providing a service that helps our members and gives them peace of mind that they’ll be looked after if they can no longer work due to illness or injury.

“Together with TAL, we are also making process changes that significantly improve the member claims experience, recognising that issues around communication and administrative processes need to modernise to reduce complexity and frustration for members.”

Jenny Oliver, GM Group Insurance at TAL said that working with Cbus to make a real difference for its members required close collaboration across both of our organisations.

“We have a strong and shared objective to ensure group insurance continues to deliver value for all Cbus members and these changes reflect that," Ms Oliver said.

Key points:

  • These changes will be effective for members from 30 September 2017.
  • Premium rate reduction of 25% ($3.58 to $2.68 per week cost per unit for Death and TPD cover)
    • This includes a 40% reduction to TPD for Manual members and 44% to TPD for Non-manual and Professional members.
  • Premiums for income protection accident only cover for sole traders down by 44%.
  • Cover per unit of TPD increasing between 100%-20% for Industry Manual members between age 15 and 44
    • For those aged 15-20 years old this will see 1 unit of TPD cover double from the current $26,000 to $52,000
    • 15-20 year olds new default cover of 1 unit Death and 1 unit TPD
      • Death cover reduces to $52,000, TPD remains at $52,000
      • Default cover cost reduction from $7.16 to $2.68 per week.
  • No change to Electech cover levels, premiums or default units.