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ARTICLE · 16 DECEMBER 2021

Law on unfair contract terms now extends to insurance

Stacks Law Firm
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Unfair contract terms protections have been extended under new legislation to include standard insurance contracts.

AustraliaInsurance
Tony Mitchell
Tony Mitchell
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Unfair contract terms protections have been extended under new legislation to include standard insurance contracts.

The Financial Sector Reform (Hayne Royal Commission Response - Protecting Consumers (2019 Measures)) Act 2020 has amended the law relating to unfair contract terms in insurance contracts and also applies to funeral expense facilities and mortgage brokers.

The new legislation affects insurers, brokers, businesses and consumers who have entered into, renewed or varied a standard insurance contract after 5 April 2021.

Decision to include insurance in unfair contract laws

The extension of unfair contract terms protections to include insurance was recommended in the Financial Services Royal Commission, after it found many insurance contracts were unfair to consumers.

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