An insurance company boss accused of misleading and ripping off Aboriginal families by signing them up to expensive funeral plans had no training or qualifications to do the job, the banking royal commission has heard.
Aboriginal Community Benefit Fund CEO Bryn Jones was representing the 25-year-old firm at the inquiry in Darwin on Wednesday when he revealed he'd been hired last year by its Vanuatu-based founder and major shareholder, Ron Pattenden.
The company has nearly 13,500 Aboriginal clients with funeral insurance plans and is accused of falsely presenting itself as indigenous-owned and exploiting the cultural importance of funerals.
Under questioning from counsel assisting the commission Rowena Orr QC, he admitted he had not previously worked in the industry and has no qualifications.
"It was under the premise that I was to try and modernise and bring the appropriate people in that did have the relevant experience and knowledge and know-how to take the company forward," he said.
"I was teaching children sport and also working within the IT sector."
Customers on Centrelink payment who believe they are contributing to a savings plan and can still access the money have paid ACBF premiums well in excess of any benefit they will receive.
Tracey Walsh, who broke down in tears while testifying, shelled out more than $10,000 over a decade after signing up aged 40 but was only entitled to a maximum benefit of $8000. ACBF refused to lift the amount due to her history of depression.
The inquiry heard 600 other customers had paid more than their benefit and the company's average policy value was well below the industry average.
Mr Jones also had to explain why ACBF had long denied funeral cover for suicides when more than half its customers were children or under 25s and Aboriginal youth suicide rates were the highest in the world.
Also on Wednesday, the royal commission heard a recording of a Let's Insure salesman pushing funeral and life cover on Aboriginal woman Kathy Marika.
Ms Marika is heard to say she didn't need it because she already had funeral insurance with her employer, the Bangarra Dance Theatre. Yet she was persuaded to sign up along with her three children anyway.
"Yeah, brilliant ... now the reason why people take one out with us as well as the one that they have at work is because we're priced up to 50 per cent less and, as can you imagine, you don't really want to be spending too much, do you," the salesman responds.
Ms Marika later took legal action and was refunded $1,890.34.
"I told them I didn't want it, I told them I already had one but he seemed to be really pushy for me to say yes," she told the hearing.
Let's Insure CEO Russell Howden was forced to admit the salesman had followed a training manual script.
Australian Associated Press
