ASIC issues Information Sheets on new Unfair Contract Terms laws

The Australian Securities and Investment Commission (ASIC) has released information sheets on the application of unfair contracts laws to insurance contracts.

These laws take effect in April 2021, and apply to insurance contracts issued or renewed after that date. Information sheets have been issued in relation to consumer insurance contracts and small business insurance contracts.
The National Insurance Brokers Association (NIBA) has written to members providing information on the operation of the new unfair contracts laws, with comments on the Information Sheets recently issued by ASIC.

NIBA CEO Dallas Booth said, “We urge all insurance brokers to take the time to understand the operation of these new laws.”

The ASIC Information Sheets are available on the regulator’s website, please click on the links below to access them:

https://asic.gov.au/about-asic/what-we-do/our-role/laws-we-administer/unfair-contract-terms-law/unfair-contract-term-protections-for-consumers/

https://asic.gov.au/about-asic/what-we-do/our-role/laws-we-administer/unfair-contract-terms-law/unfair-contract-term-protections-for-small-businesses/