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ARTICLE · 01 AUGUST 2019

Proposal to extend the unfair contract terms regime to insurance contracts

Gilchrist Connell
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The draft Bill proposes amendments to enable the unfair contract terms regime to apply to insurance contracts.

AustraliaInsurance
Alex Haslam
Alex Haslam
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On 30 July 2019, the Federal Government released, for consultation, the draft Treasury Laws Amendment (Unfair Terms in Insurance Contracts) Bill 20191, being its draft legislation to extend the unfair contract terms regime found in section 12BF-12BM of the Australian Securities and Investments Commission Act 2001 (Cth) (ASIC Act) to insurance contracts (by amending the ASIC Act and the Insurance Contracts Act 1984 (Cth)).

The release of the draft Bill for consultation follows the 2017 Senate Economics Committee Inquiry into the general insurance industry and recommendations made by Commissioner Hayne in the Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry published on 1 February 2019 (Final Report), with the stated purpose of the draft Bill reflecting 4 of those recommendations.

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