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ARTICLE · 06 JANUARY 2020

Insurers Operating In Australia Can Expect Another Layer Of Consumer Protection

Clyde & Co
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Regulation will extend existing unfair contract terms regime to insurance products

AustraliaInsurance
Avryl Lattin
Avryl Lattin
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Regulation will extend existing unfair contract terms regime to insurance products

Currently, insurance contracts are exempt from the existing unfair contract terms (UCT) regime in the Australian Securities and Investments Commission Act 2001 (Cth) (ASIC Act). In respect of other standard form contracts, the UCT regime operates to void terms of consumer contracts or small business contracts if they are declared by a Court to be unfair.

However, after many years of debate and following the recommendation in the Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, the Australian Government will be extending the provisions of the UCT regime insurance contracts.

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