168Death and incapacity cover

168 Death and incapacity cover

(1)  The Commission –

(a) may arrange cover for death and incapacity benefits in relation to members; and

(b) may receive and give full and effectual receipts, release and discharges in respect of the payment of any moneys under any such cover as may be required from the Commission and which it thinks proper, having regard to the circumstances.

(2)  Any cover for death and incapacity benefits that is arranged by the Commission in relation to members is to be in the name of the Commission and remain under the control of the Commission while the cover is subject to these regulations.

(3)  Only the Commission –

(a) is entitled to enforce any rights, remedies or contracts in connection with, or incidental to, any cover for death and incapacity benefits in relation to members that is arranged by the Commission; and

(b) is entitled to the full benefits and advantages of such cover –

and no member, or any person claiming through or under a member, has or may claim any right, title or interest in or to any such cover or contract or in respect of moneys payable under such cover or contract.

(4)  If the Commission takes out or increases insurance, or seeks to do so, in relation to a member’s benefit and the insurer –

(a) does not accept the member on the standard terms; or

(b) restricts the level or scope of insurance claim in relation to a member; or

(c) for any reason does not pay the whole or any part of a claim in relation to a member –

the Commission must modify the member’s benefit as it considers appropriate, if to do so is not contrary to law or the requirements imposed in similar circumstances on regulated superannuation funds by the SIS Act.