There are some important changes to insurance cover through Qantas Super.
Changes to insurance premiums
Insurance premiums will increase for most types of insurance cover from 1 August 2020.
A range of factors mean that our insurer considers it is more likely that members will make insurance claims for some types of cover. The COVID-19 pandemic, the slow down in the Australian economy, and the temporary stand down of many Australian workers, for example, mean more members are likely to make an insurance claim. Insurers around the world have increased insurance premiums to cover the higher risk of claims being made.
Nobody likes price increases, and combined with the additional challenges our members are facing at this time, we understand this news will be disappointing. Please know that we have negotiated tirelessly on your behalf to keep premium increases as low as possible. You also have control over the level of insurance you have and can change or cancel your insurance cover at any time.
As a member of Division 10, your employer pays for part of your Standard Cover. Premium increases will only impact your income protection cover and any Voluntary Cover you have. However, the premiums your employer pays for your Standard Cover counts as a concessional contribution for you. The increase in premiums means the amount that counts towards your concessional contributions will increase.
You can find the new premium rates applicable to your division here.
What do I need to do?
You don’t need to do anything.
How do I change my cover?
You can change or cancel your insurance by completing a form and sending it to us. You can download the relevant form here.
Changes to income protection when you are stood down or on leave without pay
The income protection cover provided to you while you are stood down or on leave without pay (LWOP) is changing.
What are the current arrangements?
Income protection cover continues while you are stood down or on LWOP, including insurance premiums being paid from your account. This cover stops after 16 months, unless you make super contributions or request to keep the cover. If you are ill or injured while stood down or on LWOP and eligible to make claim, you can only start receiving your benefit from the later of your nominated return to work date or the end of the waiting period.
What are the new arrangements?
From 1 August 2020, income protection cover will stop for the period you are stood down or on LWOP. This includes if you were stood down or commenced LWOP prior to 1 August 2020. You won’t pay premiums for the period your cover has stopped.
Your income protection cover will re-commence automatically on your nominated return to work date, if you are at work for the normal daily hours of work and are actively performing the full, unrestricted or unmodified duties of the job you had before you were stood down or went on LWOP (At Work).
If you are not At Work on your nominated return to work date, you will not be covered for any pre-existing conditions. You will only be covered for an illness which became apparent, or any injury which occurred, on or after your nominated return to work date (Limited Cover). Limited Cover will apply until you have returned to being At Work for 30 consecutive days, at which point, full cover will apply.
Here's an example of how the new arrangements work
Raj is taking LWOP for 12 months from 1 September 2020 to 31 August 2021. From 1 September, Raj’s income protection stops automatically, and the premiums he pays for this cover stop being deducted from his super account. If Raj falls ill while he is on LWOP, he is not covered by income protection.
When Raj returns to his full duties on 1 September 2021, his income protection cover is automatically switched back on and premiums for this cover are deducted from his super account.
Why have the arrangements changed?
We’ve adjusted the arrangements for income protection cover to make it fairer and better value for money. While we understand this change means members will not have income protection cover for any illnesses or injuries that occur while you are stood down or on LWOP the two primary reasons we changed these arrangements are:
- You don’t pay for income protection cover during a period where you can’t receive the benefit of that cover; and
- Income protection premiums are not deducted from your super account while you are likely to have a reduced income and less contributions going into your super account.
What if I have a second job?
You will not have income protection cover through Qantas Super while you’re stood down or on LWOP, even if you have a second job outside of Qantas Group.
Change of insurer
MetLife, a leading global insurer, will be Qantas Super’s new insurance provider from 1 July 2020. With the COVID-19 pandemic leading many insurers to review their premium rates, we negotiated with insurers to minimise premium increases for our members. When compared, MetLife’s pricing, product, and service offering were determined to be in the best interests of our members going forward.
The change of insurer does not change the terms and conditions of your current insurance policies, apart from what has been covered in this notice. Our existing insurance arrangement with MLC will end on 30 June 2020. However, if you make a claim that relates to an injury or illness which happened to you prior to 1 July 2020, it will be assessed by MLC.
We're here to help
To understand these changes in more detail or discuss your insurance options, you can call us on 1300 362 967 or book an appointment with a Super Adviser.