Insurance news08 Apr 2020 2 min read
A number of legislative changes have recently come into effect in relation to insurance in superannuation. At the same time, there are also insurance implications resulting from the current COVID-19 situation and the government’s stimulus response.
- The pandemic clause that normally applies to insurance cover within your super is being removed for COVID-19.
- Income Protection cover applies if you are ill or injured, but not for loss of employment.
Pandemic clause waived for COVID-19
We are pleased to let our members know that our insurer, TAL, will be removing the pandemic clause from our Life Cover policy.
What this means is that if you need to make a COVID-19 claim on your Life Cover, it will not be excluded by the pandemic clause if you meet the other eligibility criteria.
Income Protection cover and COVID-19
The Income Protection insurance we offer only covers you if you cease work due to being ill or injured. What this means in the context of COVID-19 is that if you cease work under medical advice because you have contracted COVID-19, you will be able to lodge a claim, but you will still need to meet the relevant policy terms, and must be off work for your applicable waiting period.
As Income Protection insurance only covers for illness or injury, you will not be able to claim if you are affected by the following:
- self-isolation due to COVID-19
- loss of employment or income, including due to COVID-19 and redundancy
- reduction of employment or income, including due to COVID-19
- workplace closing, including due to COVID-19
- being stuck overseas and unable to return to work due to COVID-19.