Govt to address unfair terms in insurance contracts
|
|
The Government is seeking comment on an options paper it released today to address unfair terms included in insurance contracts.
The paper was released by the Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen. It sets out a number of possible options to deal with the potential for unfair terms in insurance contracts. These suggestions include reforms to the Insurance Contracts Act 1984.
Bowen said that the new legislation provides further protections for individual consumers affected by unfair terms in contracts that deal with the acquisition of goods or services (which includes financial services). But he added that the Insurance Contracts Act limits the availability of remedies in other legislation about insurance contracts.
“The passage of the Australian Consumer Law and the related amendments to the ASIC Act through the Senate is an important step in providing the credit regulator, ASIC, with the ability to be able to bring actions on behalf of consumers against unfair terms in credit contracts — including mortgages and transaction accounts,” said Bowen.
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
