Around 20,000 Australians have signed a petition urging the 0government to take action to end exemptions for insurance companies from unfair contract terms.
The petition will be handed to Parliament today by consumer groups Choice and Consumer Action Law Centre (CALC) in a bid to close the “damaging loophole”.
The consumer groups expect the government will act on unfair contract terms in insurance within the next fortnight, following Treasurer Josh Frydenberg’s July proposal to extend existing unfair contract terms legislation to the insurance industry, reported The New Daily.
“Australians deserve fair insurance they can rely on when they need it the most,” said CALC policy and campaigns director Alix Pearce.
Among the suggested changes to unfair insurance contract terms legislation, one of the most contentious is Mr Frydenberg’s proposal to make ‘main subject matter’ definitions more narrow. These definitions describe what is being insured and are exempt from unfair contract terms, but insurers can currently include additional details such as the scope of cover and exclusions.
If Mr Frydenberg’s proposed changes are passed, only the terms specifically describing the item being insured will be exempted.