How Does the General Insurance Code of Practice Work in Australia?

The new general insurance code of practice came into force on 18 July 2006, replacing the 1995 code. The new general insurance code aims to raise the standards of insurers in consumer areas like training of employees and service providers, buying insurance, financial hardship, insurance claims and complaints handling. There was a life insurance code of practice with the same names but it has been superseded by the changes to the corporations legislation brought about by the financial services reform legislation which promote confidence and inform decision-making by consumers.

The general insurance code of practice parallels the code of banking practice and addresses many of the same issues: improve product disclosure policy documentation, so that consumers can make informed choices. Improved standards of service including minimum standards on claims handling procedures. Dispute resolution according to the code and the financial services reform legislation requiring each insurance have an internal dispute resolution system in place, and they require insurer which cannot settle a complaint to refer it to a recognised external dispute resolution provider.

If you have any further questions you can contact David Coleman who is a lawyer based in Sydney Australia with over 10 years experience in the legal industry.