Unfair Contract Terms
In early 2020 ASIC (Australian Securities and Investment Commission) extended the Unfair Contract Terms) Bill to the insurance industry, this change was effective 5 April 2021.
The result is that the insurance industry have analysed their policy wordings in order to identify terms that may have been deemed unfair and worked hard to update their policies to reflect fairer terms.
The updated policy wordings are applicable to personal and domestic insurances and also to insurances for small businesses employing less than 20 people where the initial premium is less than $300,000. These changes were effective from 5 April 2021 and you will continue to see the new policy wordings as policies renew between this date and until the same time next year.
It is important to note that the changes being implemented are not aimed at changing the level or type of cover. The changes made are to the language used in the PDS to make them clearer, more customer focused and to better reflect the current processes of the insurers.
If you have any questions regarding the above or about your new wordings please call us to discuss.