Pandemic Alert

March 2020
Disclosure & Marketing
Death Benefits

The Social Media Epidemic, the Reality TV Epidemic and now the looming threat of the COVID-19 Pandemic!

After you stock up on toilet paper and toothpaste, you should check your fund's insurance policy to see whether it has a "pandemic" clause.

Insurers take different approaches.  Some policies contain no specific provision dealing with the issue.  Some authorise the insurer to vary the terms of the policy to impose limitations on cover for new members.  Some contain exclusions so that no benefit is paid in the event of death caused by a pandemic illness.

We recommend you take the following steps:

  1. Understand what is in your policy.
  2. If your PDS does not currently disclose the potential impact of a pandemic on a member's insured benefits on the basis that it was not a significant term (because a pandemic was a remote possibility), consider updating the PDS at the same time as you update for PMIF.
  3. If you are renewing or replacing your current insurance policy, pay particular attention to this issue.
  4. Wash your hands regularly.

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