A Fair Go in Insurance

Date : 03 Feb 2011

Victoria Legal Aid is part of a coalition of consumer advocacy and legal aid organisations that has released 12 recommendations for reform of the insurance industry. The recommendations put pressure on the government to secure real action when it meets with the insurance industry today.

Recommendations

The ‘A fair go in insurance’ recommendations are:

1. Develop a fair and easily understood standard definition of flood that must be used in all Australian household insurance policies.
2. Introduce a mandatory key facts sheet for general insurance policies.
3. Require clear and bold disclosure of exclusions.
4. Implement last year’s Senate recommendation to extend national unfair contract terms protections to insurance contracts.
5. Implement a six month timeframe for determining insurance claims.
6. Encourage the industry to offer total replacement policies instead of sum insured policies.
7. Require insurers to offer fortnightly payment and Centrepay payment options.
8. Require insurers to inform consumers calling about a claim about their right to make a claim, appeal a decision or go to the Financial Ombudsman Scheme.
9. Ensure important information about flood mapping and insurance claims data is publicly available .
10. Establish a panel of independent hydrologists available to consumers in dispute with their insurer in flood damage claims.
11. Establish a flood legal and financial counselling program.
12. Refer a flood insurance inquiry to the Productivity Commission to investigate full flood cover for the Australian community.

Further information on the recommendations and the accompanying media release are below.

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