In September 2025, ASIC issued the super fund Rest two infringement notices totalling $37,560 after it told more than 2,000 members — in annual statements and emails sent between June 2024 and January 2025 — that they held active death, TPD and/or income protection insurance, when those members had cancelled, declined, lost or never held that cover.
The fine is small. The lesson is not: even an official statement from your super fund can be wrong about your insurance.
The key numbers
Source: ASIC media release 25-218MR, 29 September 2025.
What happened
Between June 2024 and January 2025, Rest issued annual statements and emails indicating that more than 2,000 members held active death, total and permanent disability (TPD) and/or income protection insurance in the fund — when each of those members had previously cancelled, declined, lost or otherwise not held that cover.
ASIC alleged Rest made false or misleading representations that it had a right to activate the cover and, as a result, deduct premiums from the member's account, when it had no such right — contrary to section 12GX of the ASIC Act. Rest paid the two infringement notices on 22 September 2025.
Why this matters more than the fine suggests
The dollar penalty is small, but the underlying problem is not. There are two sides to the risk when a statement is wrong:
- you might be charged premiums for cover you cancelled — quietly eroding your balance month after month
- or you might believe you hold cover you don't — leaving you or your family unprotected at the worst possible moment, when you go to make a claim
Don't rely on the statement — verify it
An annual statement or email is a useful prompt, but it is not proof. To be sure what you actually hold, it is worth taking a few minutes to:
- log in to your super account online, or call the fund directly
- check your most recent statement and the Product Disclosure Statement (PDS)
- confirm the type of cover, how much applies, and whether it is currently active
- check whether insurance premiums are being deducted from your balance
- ask about any exclusions or definitions that could affect a future claim
Part of a wider ASIC crackdown
ASIC has named member-services failures in super as an enforcement priority. This action sits alongside its court case against Cbus over death and TPD claim delays and its landmark report into death benefit claims handling — a clear signal that funds are expected to get the basics right.
Free Claim Check
At ClaimSure, we help people work out what insurance actually sits inside their super — and whether there may be a claim worth pursuing.
We can help you:
- review your situation in plain English
- identify relevant super accounts, including lost or forgotten super
- understand whether there may be TPD, life insurance, or income protection cover — and what it really says
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Wondering if any of this applies to your situation? Reach out and we'll review your circumstances together — no obligation, plain English.
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