Superannuation giant Cbus has admitted it breached corporate law and agreed it should pay a $23.5 million fine in its bid to settle a landmark case over major delays in its handling of insurance claims.

In a case that put the super industry on notice, the Australian Securities and Investments Commission (ASIC) last year took Cbus to court , alleging “systemic” failures in its handling of death benefits and total and permanent disability insurance claims.

Cbus and ASIC on Tuesday night filed documents with the Federal Court, saying the two sides had agreed to a $23.5 million penalty for the fund, which also admitted to breaches of corporate law. Cbus also estimated it would pay out $32 million in compensation to 7,402 people, in response to its problems with claims handling.

If the pro

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