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ARTICLE · 19 MAY 2013

Unfair contract terms protection is extended to general insurance contracts

Corrs Chambers Westgarth
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Companies should implement amendments to contracts and update compliance materials, to comply with the new regime.

AustraliaInsurance
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The unfair contracts terms regime is being extended to all general insurance contracts (other than contracts for life insurance).

Companies should commence implementing amendments to contracts and updating compliance materials, to ensure compliance with the regime.

All relevant front line personnel should be across the unfair contracts terms regime, and other consumer law principles, so that they have regard to them in their interactions with consumers.

As foreshadowed in December 2012, the Government has released draft legislation to extend the unfair contract terms regime to general insurance contracts.

Until now, by virtue of a carve out in section 15 of the Insurance Contracts Act 1984 (Insurance Contracts Act), general insurance contracts have been excluded from the protections against unfair contract terms.

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