Rest Super Faces Class Action Over Alleged Wrongful Deduction of Income Protection Premiums

According to Shine Lawyers, Rest Super automatically enrolled new members into income protection insurance without their active consent. Additionally, the firm alleges that when members did not make any contributions to their Rest accounts for 13 continuous months or more, the default income protection insurance policy did not provide coverage. Furthermore, members holding multiple income protection insurance policies simultaneously received little to no coverage from the Rest policy.

Hadi Boustani, Practice Leader at Shine Lawyers, stated, "This was money down the drain for fund members who paid a premium for no benefit. As a result, we're seeking compensation for insurance premiums which we allege were unfairly deducted, as well as investment returns and administration costs."

In response, a spokesperson for Rest Superannuation indicated that the fund intends to defend the class action. They emphasized that Rest's group insurance cover is designed to meet the needs of its members, many of whom work part-time and may not be able to obtain income protection cover by other means or at a reasonable cost.

This case highlights the importance of transparency and informed consent in the management of superannuation funds and associated insurance products. Members are encouraged to regularly review their superannuation accounts and insurance coverages to ensure they align with their needs and expectations.