ARTICLE · 19 JUNE 2014

Coming soon: Changes to the Insurance Contracts Act affecting life insurers and third party beneficiaries

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These new provisions will affect life insurers and third party beneficiaries under general insurance contracts.

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Danielle Fraser

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Focus:	Insurance Contracts Amendment Act 2013
Services:	Financial Services, Insurance
Industry Focus:	Financial Services, Insurance

The Insurance Contracts Amendment Act 2013 (Amendment Act) will see a number of reforms to the Insurance Contracts Act 1984 (ICA) over the next year and a half. The commencement of the new provisions are being staggered on various dates across the period between 28 June 2013 and 28 December 2015.

A number of the new provisions are due to commence on 28 June 2014. These provisions affect life insurers and third party beneficiaries under general insurance contracts. The Amendment Act seeks to align, as closely as possible, the rights and obligations of the insured with those of a third party beneficiary under a contract of insurance. This article discusses some of the changes taking place at the end of the month, and the impact of these changes.

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