Maurice Blackburn blasts FSC for ‘Trojan horse’ lobbying

Maurice Blackburn warned that the FSC has revived an ‘old campaign’ to change the law so insurers only need to pay the medical bills of a sick worker instead of paying the entire insurance claim.

“It’s deeply troubling that the FSC is seeking to re-agitate this issue at the peak of a pandemic crisis which is devastating the employment prospects of all Australians, but particularly those living with injury and illness,” said Maurice Blackburn principal Josh Mennen.

“The FSC has itself acknowledged that the opportunities for disability insurance claimants to return to work are extremely limited under normal circumstances, let alone under the current economic crisis engulfing Australia.”

Mr Mennen said it’s “irresponsible” to suggest that an insurer should be “calling the shots” on medical treatment plans in an attempt to get claimants back into a diminished job market despite Assistant Minister for Superannuation Jane Hume providing notional support for the change.

“What insurers should be instead focusing on is the ongoing and timely payment of legitimate claims so that disabled consumers can afford the medical and other support they need – and without the inappropriate interference of an insurer in those therapeutic [relationships],” Mr Mennen said.

Mr Mennen also warned that the same proposal for change was rejected by a parliamentary joint committee in 2018, which recommended ASIC conduct a full investigation into the use of in-house rehabilitation services by insurers.

“While it appears to be altruistic, the FSC’s campaign to change the law has always been a Trojan horse to push past the privacy and other legal rights of their disabled claimants and gain greater control over their medical treatment,” Mr Mennen said.

“Until the committee’s recommendations have been faithfully completed and the findings of the ASIC investigation are released, then any calls for an expansion of a life insurer’s rights in the medical decisions of claimants is premature and unwarranted.”