Australia’s corporate watchdog, ASIC, took the $94 billion super giant, headed up by former Labor treasurer Wayne Swan, to court.
It alleges the fund mishandled $20 million worth of death and disability insurance claims.
Ten thousand grieving and vulnerable families have been left in limbo.
Some were claiming life insurance after the death of a loved one, others claiming disability payouts after workplace accidents.
Their claims were delayed, for the majority, by more than a year.
The embattled fund is blaming high staff turnover and poor training at an outsourced administration team tasked with processing the claims.
Cbus also claimed that it’s still better than most superfunds.
“Our insurance policies… are more likely to pay out. Most funds pay out about 10% less,” Cbus CEO Kristian Fok told the inquiry.
