12 February 2007

Pearce Announces Insurance Contracts Act 1984 Reform Package

The Parliamentary Secretary to the Treasurer, Chris Pearce MP, today released a draft reform package that gives effect to most recommendations of the review of the Insurance Contracts Act 1984 (the Act).

The package comprises a draft bill, draft regulations, explanatory materials and a draft regulation impact statement. 

In accordance with the findings of the Review Panel, the purpose of the amendments is to update the Act, respond to market developments, clarify provisions in light of judicial interpretation and address anomalies in the operation of the Act.

Some of the Review Panel's suggestions, including updating the standard cover regulations and collection of data on claims by innocent co-insureds, are being progressed separately from the reform package.

“I would like to take this opportunity to record the Government's thanks to Ms Nancy Milne and Mr Alan Cameron AM for their work on this review,” Mr Pearce said.

The Government is seeking comments on the materials in the reform package, which may be found at:   http://icareview.treasury.gov.au. Submissions should be received by the Treasury no later than 23 March 2007.

12 February 2007
Canberra

Contact: Conor O'Brien  02 6277 2088 or 0402 970 515