Super Consumers Australia has called for an inquiry into group insurance amid a rise in mental health claims.

It wants the Productivity Commission to conduct the “root and branch review … to ensure Australians get value for the billions paid annually in premiums” for life cover through superannuation.

It says claims processes must be “fairer, faster and more compassionate, particularly for people with mental health conditions, by promptly mandating member service standards”.

Last year, about 92% of total and permanent disability group cover claims were admitted, according to prudential data. However, the data does not provide a breakdown for mental and physical claims.

Super Consumers director of advocacy Susan Quinn says mental injuries are more complex than physical ones and many funds have unnecessary barriers and tough burdens of proof.

“It really is a bit of a lottery depending on your super fund,” she said. “Some of them have got quite specific sorts of tests and requirements in the insurance policies.

“Others have got really general, broad tests that are pretty ambiguous if there’s someone walking in trying to make a claim.

“Super funds need to be asking, is the process fast, efficient and transparent for the person going through it, and is there a bit of compassion and empathy in these claims? Often we are not seeing that.”