Important update from AFCA

The Australian Financial Complaints Authority (AFCA) has issued an updated note on how it will approach the handling of disputes where an insurer has denied a claim on the basis of a breach of the duty of disclosure or making of a misrepresentation.

The note sets out how AFCA will apply the relevant provisions of the Insurance Contracts Act to disputes of this nature. National Insurance Brokers Association (NIBA) CEO Dallas Booth said, “These are important matters, and I suggest you refer this note to managers responsible for handling complaints and disputes, matters referred to AFCA, and any other members of staff who need to be aware of these matters.”

NIBA’s legal adviser Mark Radford has prepared a note on this matter, which can be accessed here.