10 August 2012

Draft regulations for key facts sheets for home building and home contents insurance policies released

The Minister for Financial Services and Superannuation today announced the release of exposure draft regulation and an accompanying explanatory statement for the provision of Key Facts Sheets for home building and home contents insurance policies.

"Key Facts Sheets will reduce consumer confusion that currently exists over what is covered and what is not covered in home building and home contents insurance policies," Mr Shorten said.

Providing consumers with easier access to key information, Key Facts Sheets will help ensure consumers are able to make more informed decisions about their insurance policies.

"Too often people fail to make informed decisions as a result of being confronted with lengthy and complex insurance contracts and product disclosure statements. These one page Key Facts Sheets have been consumer tested to ensure that they communicate the contents of policies clearly."

"The release of the exposure draft regulation is the yet another step in the process of ensuring that the consumers are provided with a fairer, more transparent insurance system".

The Government is seeking comments on the content, format, structure and provision of the one page Key facts Sheet posed in the regulation. The draft Regulation can be found on the Treasury website.