Laws Ensure Fairer Insurance; Federal Legislation Extends Protection against Unjust Contract Terms in Wake of Floods
IPSWICH residents and other Australians C[pounds sterling]wonCOt have to fight insurance claims with one hand tied behind their backsC[yen] now that the Federal Government has legislated to protect consumers from unfair terms in insurance contracts.
After the 2011 floods many Ipswich residents found that expected insurance payouts were denied by the fine print.
But that situation is now set to change.
Federal Member for Blair Shayne Neumann said that for the first time protections against unfair contract terms enshrined in AustraliaCOs consumer protection legislation will be extended to general insurance contracts, which had previously been excluded.
C[pounds sterling]Australians should not have to fight insurance claims with one hand tied behind their back because of unfair contract terms,C[yen] Mr Neumann said.
C[pounds sterling]These new protections will allow consumers, or the Australian Securities and Investments Commission as the regulator, to challenge a term in the courts.
C[pounds sterling]People have long had concerns that some terms in insurance contracts are simply unfair and are used to dismiss otherwise valid claims.
C[pounds sterling]The worst nightmare for many people facing a traumatic moment in their lives is finding out they will not have their insurance claims paid because the fine print in a contract unfairly favours the insurance companies. …