In November 2025, the Federal Court ordered United Super — the trustee of the Construction and Building Unions Superannuation Fund (Cbus) — to pay a $23.5 million penalty after the fund admitted serious failures in how it processed death benefit and total and permanent disability (TPD) insurance claims. More than 7,000 Australians were affected while grieving the loss of a loved one or coping with a life-changing injury.
It is one of the clearest signals yet that delays in super insurance claims are not just frustrating — they are a regulatory failure with real consequences. It is also a timely reminder to check on any claim of your own.
The key numbers
Source: ASIC media release 25-286MR, 25 November 2025.
What ASIC and the Court found
Cbus admitted it caused unreasonable delays in processing death benefit and TPD claims, and admitted contravening the Corporations Act. ASIC's case showed that between late March and early May 2023, around half of all death claims and roughly 40% of all TPD claims had been open for more than a year.
The trustee had outsourced its claims handling to an external administrator and then failed to properly monitor it, keep accurate and complete claims data, ensure adequate oversight, or report the problems to ASIC within the required timeframes.
Why a year-long delay matters so much
Death and TPD benefits are often the money a family relies on after losing an income earner, or when someone can no longer work because of illness or injury. Long delays land at the worst possible time.
ASIC Deputy Chair Sarah Court said: "Thousands of Australians suffered real and avoidable harm because of long delays and system failures in the way Cbus handled important and sensitive insurance claims." She added a pointed message for the whole industry: "You cannot outsource your obligations to your members."
Cbus is paying compensation on top of the fine
Separately from the penalty, Cbus is running a remediation program paying approximately $32 million to the affected members and claimants for lost earnings and wrongly charged fees. To put the penalty in perspective, the $23.5 million figure is larger than the trustee's entire revenue for the 2024 financial year.
What this means for you
If you or a family member have a death benefit or TPD claim open with any super fund, it is worth checking how long it has been sitting there. Delays are common, but they are not something you simply have to accept.
It may be worth taking a closer look if:
- a death benefit or TPD claim has been open for several months with little progress
- you are not sure what stage your claim is at, or who is assessing it
- you are facing financial hardship while you wait
- you are unsure whether a loved one's super even included insurance
Keep records of every form and phone call, follow up in writing, and if a claim stalls you can complain to the fund and then escalate to the Australian Financial Complaints Authority (AFCA).
Free Claim Check
At ClaimSure, we help people understand and follow up potential life insurance and TPD claims through super — including where a claim has stalled or been sitting unprocessed.
We can help you:
- review your situation in plain English
- identify relevant super accounts, including lost or forgotten super
- understand whether there may be a death benefit, TPD, or income protection claim worth pursuing — and what to do if it is being delayed
Start with a Free Claim Check
Wondering if any of this applies to your situation? Reach out and we'll review your circumstances together — no obligation, plain English.
Free Claim Check →