In brief - Insurance industry will be impacted by
strengthened penalties and insurers may face penalties of up to
$210 million
Treasury is proposing key new provisions in the Insurance
Contracts Act 1984 which will permit ASIC to apply for a
penalty provision for breaches of the utmost good faith obligation
and will see a substantial increase on the penalty for failure to
provide a key fact sheet.
Treasury moves to increase ASIC's enforcement
powers
For decades commentators have argued whether insureds have a US
style cause of action for breach of good faith against insurers in
respect of insurance policies.
It seems that in Australia there is still no separate cause of
action for breach of good faith that stands alone from the remedies
available under the Insurance Contracts Act and the
policy. It does not appear that this will change.
