Cbus Faces Legal Action Over Delayed Insurance Claims

The Australian Securities and Investments Commission sues Cbus for failing to process claims efficiently, affecting over 10,000 members.

• Cbus Super is under scrutiny for significant delays in processing death and disability insurance claims, impacting thousands of members since 2022.
• The Australian Securities and Investments Commission (ASIC) has initiated Federal Court proceedings against Cbus, marking the first case of its kind for delayed claims handling.
• High staff turnover at the third-party administrator, Australian Administration Services, is cited as a key reason for the delays.
• Cbus has apologized to affected members and their families, acknowledging the distress caused by the delays and promising improvements.
• An independent review is underway to assess the fitness of CFMEU-linked directors on Cbus' board, ordered by the Australian Prudential Regulation Authority.

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The Sydney Morning Herald Australian Broadcasting Corporation The Sydney Morning Herald The Sydney Morning Herald mint