Retirement
Rest Super members file class action over alleged insurance premium deductions
Retirement
Rest Super members file class action over alleged insurance premium deductions
Shine Lawyers has initiated a class action lawsuit against Rest Superannuation (Rest), alleging the unlawful deduction of income protection insurance premiums from members' superannuation accounts.
Rest Super members file class action over alleged insurance premium deductions
Shine Lawyers has initiated a class action lawsuit against Rest Superannuation (Rest), alleging the unlawful deduction of income protection insurance premiums from members' superannuation accounts.
The law firm contends that from December 2008 to June 2019, Rest automatically enrolled new members in income protection insurance without their explicit consent. According to Hadi Boustani, Shine Lawyers' Practice Leader, the action also includes claims that members who had not contributed to their accounts for over 13 months received no coverage from their policies and that holding multiple policies resulted in negligible benefits. Boustani criticized the practice, stating, "This was money down the drain for fund members who paid a premium for no benefit." He further explained that the lawsuit seeks compensation not only for the unfairly deducted premiums but also for lost investment returns and incurred administration costs.
The lawsuit potentially affects up to 500,000 Rest members. One of the claimants, Jarrod Lane, emphasized the importance of the class action for accountability, noting his personal experience of being charged for an unclaimable income protection insurance over a period when he was not earning an income.
Woodsford, a global finance firm specializing in ESG and litigation, is financing the class action. Clare Owen, Woodsford Australia's Director and Head of Origination, emphasized the significance of superannuation for Australians' retirement plans and expressed the company's support for the lawsuit as a means to recover unjustly diminished superannuation funds.
Eligibility for participation in the class action includes Rest Super fund membership between 5 December 2008 and 30 June 2019, default enrollment in an income protection insurance policy, deduction of premiums for said insurance, and either no contributions for 13 months or payment for multiple default insurance policies. The lawsuit's case management hearing is scheduled for 16 February 2024, with Justice Button ordering Rest to submit its defense by 28 March 2024.
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