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Code of conduct needed on TPD
A code of conduct attaching to the handling of total and permanent disability (TPD) claims by superannuation fund members could be a means of driving down costs and limiting the impact of lawyer involvement.
That is the assessment of industry lawyer, John Berrill, who has told a Super Review roundtable sponsored by major insurer TAL that while there were undoubtedly lawyers who might charge significant fees for doing very little, they were not the sole cause of the problems which had beset the TPD products offered by superannuation.
In response to strong criticism of the involvement of lawyers by other panellists including Deloitte partner, Russell Mason and consultant and former Superannuation Complaints Tribunal chairperson, Jocelyn Furlan, Berrill said it was unrealistic to expect that lawyers could be excluded from the claims environment.
"In my view you cannot regulate whether someone can or cannot go to a lawyer to assist with superannuation claims. And there is a fundamental power imbalance between members and funds and insurers," he said.
"What I think this leads to is that this industry is crying out for a code of practice for funds, insurers and representatives of clients such as lawyers, Berrill said.
He said he had produced such a code of practice and had given it to the Association of Superannuation Funds of Australia (ASFA) and other industry bodies last year but that it had "gone no-where".
Berrill said that rather than seeking a confrontation with lawyers or the legal profession on the issue, a code of practice represented a better answer to driving higher standards, particularly if it was reinforced by something akin to the heart foundation tick.
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