Feb 2021
Mercy Super has adopted the Insurance in Superannuation Voluntary Code of Practice, “the Code”. The purpose of the Code is to provide a framework to improve the experience for members when they are interacting with the insurance cover provided through their super fund.
The Code sets out standards super funds commit to meeting by 30 June 2021. A copy of the full Code can be found here.
Mercy Super already complies with most of the standards within the Code. The following Transition Plan provides a summary of the Code requirements, our current compliance status and plans to achieve full compliance.
| Code section | Description | Status |
| Benefit Design (4.2 -4.13) |
We provide appropriate and affordable insurance that takes a member’s likely needs into consideration. Our Insurance Strategy explains how our default insurance cover is designed. As the default insurance cover is specifically focused on the characteristics of the employees of Mercy Super’s Core Participating Employers and their likely financial needs, we have opted out of section 4.8 of the Code which states that the cost of automatic insurance benefits should not exceed 1% of the estimated level of salary for our membership generally. | Complete with exception |
| Cancelling and Reinstatement of cover (4.14 – 4.23) |
Cancelling cover
We provide clear instructions on how to cancel, reduce or tailor cover as part of disclosure information issued to members and on our website. Members can cancel all or part of their cover any time in writing or online. Adjustments to existing cover, including reducing, adding or changing cover options, can be made at any time in writing. We’re working with our service providers to explore online options for adjusting existing cover. If cover is cancelled, we confirm this with members in writing along with a clear explanation of the impact it will have on obtaining cover or making a claim in the future. In accordance with legislative requirements, unless a member tells us otherwise cover will automatically be cancelled if their account has been inactive for 16 months. We will advise members in writing before and after cover is cancelled. Reinstating cover Code is currently under review |
In progress |
| Helping members to make informed decisions (5.1 – 5.23) |
We regularly review our insurance communications to ensure they are appropriate and use plain and industry–consistent language. We publish an industry standard Key Facts Sheet detailing our default cover to enable simple comparisons across super funds.
Insurance information is made readily available to members on our website and in Welcome Packs issued to new members including, where available, individual member cover details and costs. Members are also provided information on their insurance cover throughout their membership. Our disclosure information and website explain our intent to provide total and permanent disability and income protection cover as well as information about making a claim or complaint. By 1 October 2020, the disclosure documents will be reviewed to ensure disability definitions are clear and provide sufficient information on how these definitions are applied in practice. The content of our annual statement is currently being reviewed to ensure compliance by 30 June 2021. To ensure our communications to you are appropriate and easy to understand, we will undertake consumer testing with members by 30 June 2021. |
In progress |
| Supporting vulnerable consumers (6.1 – 6.12) |
We recognise that members may have unique needs and have processes, trained staff and access to additional support where needed to assist members with their insurance needs.
We’re currently in the process of further identifying and, where changes are needed, implementing updated staff training, processes and support for managing vulnerable consumers within our Fund. We will fully comply with the Code’s requirements for Supporting vulnerable consumer by 30 June 2021. |
In progress |
| Handling claims (7.1 – 7.35) |
We acknowledge that claim time can be difficult and commit to treating members with compassion and respect, providing support and making the claims process as straightforward as possible.
We will be accessible to assist members navigate the claims process, helping them to identify any cover they have within the Fund and provide personal support in making a claim. We currently offer a dedicated claims consultant to manage members’ claims and advocate on members’ behalf with the insurer as required. Appropriate governance and communication processes have been established to ensure members receive timely updates on the status of their claim and transparency of decisions made by the insurer and Trustee. Communication timeframes are currently being reviewed to ensure compliance with the Code as well as the Financial Services Council Insurer Code. We are currently reviewing our claims philosophy and will fully comply with the Code’s Handling claims requirements by 30 June 2021. |
In progress |
| Premium adjustments (8.1 – 8.5) |
We do not participate in any Premium adjustment arrangements. | Complete |
| Promoting our insurance cover (9.1 – 9.4) |
We only promote insurance cover that is appropriate and relevant to members through clear communications that are not misleading and contains relevant detail. | Complete |
| Changes to cover (10.1 – 10.17) |
We provide clear instructions on how to change cover within disclosure information issued to members and on our website
When a request is made by a member to change their cover, we make sure they are informed about their duty of disclosure and the consequences of changing cover. We let the member know the outcome, any conditions that might apply and review any decisions made by the insurer. Members have the right to make a complaint if they are unhappy with the outcome. We are currently reviewing our documentation to ensure all Code requirements are met when members change their cover. We will fully comply with the requirements of Section 10 by 30 June 2021 |
In progress |
| Refunds (11.1 – 11.3) |
We will refund premiums when a member:
If at claim time it is determined you are ineligible to claim on your insurance cover due to having automatic cover with another fund, eligibility for a refund is assessed on a case by case basis. This refund process will be reviewed by 30 June 2021. |
In progress |
| Staff and Service Providers (12.1 – 12.11) |
We ensure our staff are appropriately skilled and trained to provide their services competently and to deal with members professionally.
We require service providers to act with honesty, fairness, respect, transparency and timeliness towards us and our members. Service providers are being monitored to ensure they are complying with the relevant standards of the Code. Training material is currently being reviewed to ensure compliance with the Code. We will fully comply with the requirements of Section 12 by 30 June 2021 |
In progress |
| Making enquiries and complaints (13.1 – 13.20) |
Members have easy access to information about their cover, premiums and other relevant documentation. This information is available online or on request.
We generally handle enquires in accordance with the Code. Our complaints process is based on the Australian Financial Complaints Authority (AFCA) timeframes, which in some cases permits longer time frames for complaints to be addressed. Generally, Mercy Super responds to complaints in shorter timeframes than those specified by the Code. We are currently reviewing our enquiries and complaints processes and will fully comply by 30 June 2021. |
In progress |
| Promoting, monitoring and reporting on the Code (14.1 – 14.9) |
Mercy Super supports the objectives of the Code and promotes the Code on our website and in relevant communications to members.
Reporting systems are being enhanced to more easily monitor the requirements of the Code. We will publish an annual Code compliance report on our website. The first report will be published by 30 June 2021. |
In progress |
We recognise the critical role of insurance benefits in protecting the financial interests of our members and their dependants. While most members will fortunately never need to access their insurance benefits, for those that do it provides a vital safeguard against potential financial disaster.
Our objective is to provide appropriate default insurance cover in the event of Death, Permanent and Temporary disability and Terminal Illness which meets the basic needs of our members at a reasonable cost, while providing flexibility for members to tailor cover to meet their individual personal circumstances.
In making insurance benefits available to members, we are guided by the following principles:
| Principle | What it means |
| Adequacy | As an employer-based corporate super fund, the default insurance cover is specifically focussed on the characteristics of the employees of Mercy Super’s Core Participating Employers.
Default cover provides a level of cover in the event of Death, Permanent or Temporary Disability, or Terminal illness that considers a member’s likely life stage needs based on age and salary (where provided). |
| Affordability | We aim to balance the competing priorities of providing adequate cover against the unforeseen (and the associated cost) with the goal of building a meaningful retirement benefit. Our insurance premiums, particularly for default cover, represent good value for our members and does not inappropriately erode account balances.
Cross subsides are limited across age and types of cover as far as practicable. |
| Flexibility | We recognise that everyone is different so our default cover may not be appropriate for all members. That’s why members have the option to adjust their cover at any time:
|
| Sustainability | Our decisions seek to balance the objectives of adequacy and affordability of our insurance offering for current members without compromising our ability to provide the same quality of cover in the longer term. |
| Accessibility | When making a claim or changing insurance cover the process should be easy. We will provide all reasonable assistance to navigate the application and claim process. To the greatest extent possible we will always act in the best interests of members and their beneficiaries and will be their advocate with the insurer. |
| Effective communication | We will pro-actively engage with members and their beneficiaries and maintain clear and open communication about the terms and conditions of their insurance cover, premiums and the claims process. |
Feb 2021
Feb 2021
Feb 2021
Potter Building – Ground Floor, Mater South Brisbane Campus
Annerley Road South Brisbane Queensland
1300 368 891
information@mercysuper.com.au
