Good morning Jim,
I was listening with interest to the story you read about the superannuation firm signing up their customers to an insurance policy simply by sending them a letter.
It may be perfectly legal, but it sounds to me like a legal form of fraud. Whoever thought up the law which allows superannuation funds to assume that they have the permission to do virtually whatever they like with the compulsory contributions must have had a screw loose, as it makes it just a bit too easy for the people in charge of the super fund to siphon off a few percent of the takings to their cousin's company, or anywhere else they like.
I have to admit that if my super fund had done this, I probably wouldn't have noticed because my statement arrived about a fortnight ago and I didn't open it until I noticed it beside me while an ad break was running on the television a couple days ago.
It's sad to think that we've reached a point where you almost need a lawyer to read through the gibberish in the fine print before you sign anything, for fear of giving your life's earnings to the director of a super fund, or a bank, or any other institution that makes you sign something.
Regards,
Samuel Gordon-Stewart
Canberra
Article: Opt-out Insurance Becomes a Super Trap: Sydney Morning Herald, March 15 [1]