Labor is calling on the Government to protect Indigenous families ripped off by funeral insurance.

The Hayne Royal Commission into banking and financial services heard of the unscrupulous and shameful predatory practices by so-called funeral insurers targeting vulnerable Indigenous families.

In particular, it was found some organisations had deceptively led clients to pay far more in premiums than their families would ever receive in funeral benefits.

Clients had been led to believe that excess monies would be returned to their families.

Some organisations had passed themselves off as Indigenous-affiliated that understood and respected culture.

They had also passed themselves as not-for-profit organisations which would benefit communities.

Thousands of Indigenous families many of whom are very poor sacrificed income, pensions or benefits in the belief that their families would be spared crippling funeral costs in the future.

Now these families face the prospect of being ripped off twice in the event dodgy funeral insurance providers collapse.
Not only will they have paid the value of their funeral several times over, they risk being left high and dry.

Labor is calling on the Government ensure these vulnerable families are protected.