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Cbus Super Fined for Delays in Death and Disability Insurance Claims Processing

ASIC Imposes $23.5 Million Penalty for Breaches in Claims Handling

Cbus Super Fined for Delays in Death and Disability Insurance Claims Processing?w=400

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The Australian Securities and Investments Commission (ASIC) has imposed a $23.5 million fine on Cbus Super for significant delays in processing death and disability insurance claims.
The superannuation fund has also agreed to pay $32 million in compensation to 7,402 affected individuals.

ASIC's investigation revealed that Cbus failed to process over 10,000 claims in a timely manner, causing financial and emotional distress to members and their beneficiaries. The Federal Court approved the penalty, emphasizing the importance of efficient and compassionate claims handling within the superannuation industry.

In response, Cbus has apologized to its members and implemented reforms to streamline its claims process. These measures include doubling the size of its claims team and forming specialist units to manage claims more efficiently and empathetically. The fund aims to reduce processing times for death claims by four to six weeks, providing a simpler and more compassionate experience for families.

This case serves as a critical reminder for superannuation funds and insurers about the importance of timely and effective claims processing. For business owners and HR managers, it underscores the need to partner with insurance providers who prioritize efficient claims handling, ensuring that employees and their families receive the support they need during challenging times.

Published:Wednesday, 3rd Jun 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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Knowledgebase
Beneficiary:
The person or entity designated to receive the death benefit from a life insurance policy.