The Insurance Contracts Amendment Act received Royal Assent on
15 April 2012 (the Act).
The Act reflects the Australian Government's response to the
treatment of policyholders affected by the widespread flooding in
Queensland, New South Wales and Victoria in 2010-2011. Emerging
from these natural disasters, consumers called for clarification as
to precisely what was covered by insurance policies, to what extent
these policies provided cover for flood and what cover for flood
meant. This consumer demand culminated in the Government's 5
April 2011 publication of the consultation paper 'Reforming
flood insurance: Clearing the waters' (
refer to our previous publication here) and later in the Act
itself. Key objectives of the Act are to generate greater
uniformity in the scope of cover provided by insurers for flood
events and to improve consumer awareness in relation to the kinds
of flood cover available. The Act seeks to achieve these aims
through a standardised
