Thousands of Aboriginal children, including babies, are being signed up for funeral insurance in schemes the Federal Government has described as extraordinary and shocking.
The Government said the plans could cost as much as $100,000 over a lifetime.
Company watchdog Australian Securities and Investments Commission (ASIC) investigated the funeral insurance industry and found major problems, particularly for the Indigenous community.
Of all Aboriginal policy holders, 50 per cent are under 20 years old. A third are under 15 years old.
Federal Human Services Minister Stuart Robert said it was not conscionable that so many young children could be signed up.....
........The policy cost $40 per fortnight, which she paid for three years before it became unaffordable.
"I was lucky to meet the bills I had, and I couldn't, so I've lost $3,500," Ms Kapeen said.
"When you only get $440 for a fortnight and out of that money you've got to pay rent, run a car ... that $40 is a lot of money. I couldn't afford it."
After missing four payments, Ms Kapeen said her policy, and all the money she had paid, was lost.
She is now represented by New South Wales Legal Aid in a bid to recover some payment.
Ms Kapeen was a customer with private Gold Coast business Aboriginal Community Benefit Fund (ACBF).
It is the biggest funeral insurance company catering for Aboriginal Australians.
ACBF says it has 27,500 customers, a third which are under the age of 20.......................
....Aaron Davis from the Indigenous Consumer Assistant Network in Cairns said he had been handling complaints about funeral insurance and the ACBF for at least a decade.......
............From July next year, funeral insurance companies will no longer be allowed to use the Centrepay system, but ACBF is lobbying against that......
........Financial counsellors and legal groups are urging consumers to get advice before signing up to funeral insurance products.
http://www.abc.net.au/news/2015-11-21/aboriginal-babies-being-signed-up-to-shocking-insurance-scheme...
