REC339-4459

The Committee recommends that the General Insurance Code of Practice (the Code) be reformed to implement Recommendation 63 of the Independent Review of the 2020 General Insurance Code of Practice, that is: where the insurer has not made a decision on a claim within 12 months, and the delay is not due to the consumer or other reasons beyond the control of the insurer, the Code should require the claim to be accepted. The Committee further recommends that Australian Securities and Investments Commission consider using its powers in relation to claims management to enforce this obligation.
- This would not be triggered where a claim has been lodged with the Australian Financial Complaints Authority.
- This would be triggered where internal dispute resolution has commenced but is not resolved. If the insurer has not made a decision by 12 months, the claim must be paid.