Government launches support program for collapsed Youpla Group’s policyholders
Government launches support program for collapsed Youpla Group’s policyholders | Insurance Business Australia
Insurance News
Government launches support program for collapsed Youpla Group’s policyholders
New program builds on initiative introduced in 2022
Insurance News
By
Roxanne Libatique
The Australian Government has unveiled a solution for individuals affected by the demise of the Youpla Group (Youpla), formerly Aboriginal Community Benefit Fund.
The Youpla Support Program, set to launch on July 1, 2024, aims to aid over 13,000 people in recuperating from financial setbacks.
What to expect from the program
Targeting those who maintained active policies from August 1, 2015, onwards, the Youpla Support Program addresses the period following the Commonwealth’s decision to exclude Youpla policies from Centrepay, recognising the potential risks to vulnerable consumers.
Participants in the program will have the option to receive a resolution payment, calculated at 60% of the premiums they paid, up to the insurance value. Alternatively, they can choose a low-risk, prudentially-regulated funeral bond or a cash settlement. Financial counselling will be available for eligible recipients too.
Minister for Indigenous Australians, Linda Burney, highlighted the government’s response to the crisis.
“Losing loved ones can be one of the most traumatic events, made harder still for those First Nations people affected by the collapse of the Youpla funeral fund,” she said. “As soon as we came into government, we responded quickly with an interim support program. Since then, we’ve ensured the needs of First Nations people, communities, and key stakeholders have been front and centre in designing the Youpla Support Program.
“This measure will hopefully bring peace of mind to thousands of families impacted by the collapse of the Youpla Group.”
With a budget of $97 million, the program is scheduled to accept applications until June 30, 2026, spanning a two-year period.
Youpla Group Funeral Benefits Program
The Youpla Support Program builds on the interim Youpla Group Funeral Benefits Program introduced in July 2022, which facilitated immediate funeral expense claims for members’ families.
For further details and updates on the Youpla Support Program, individuals are encouraged to visit the National Indigenous Australians Agency’s website at niaa.gov.au/youpla or contact the agency directly at 1800 079 098.
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