Insurance Contracts Regulations 1985
Statutory Rules No. 162, 1985
made under the
Insurance Contracts Act 1984
Compilation No. 15
Compilation date: 28 December 2015
Includes amendments up to: SLI No. 50, 2015
Registered: 13 January 2016
About this compilation
This compilation
This is a compilation of the Insurance Contracts Regulations 1985 that shows the text of the law as amended and in force on 28 December 2015 (the compilation date).
This compilation was prepared on 11 January 2016.
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on ComLaw (www.comlaw.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on ComLaw for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on ComLaw for the compiled law.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Part 1—Preliminary
1 Name of regulations
2 Interpretation
2A Definition of consumer credit insurance
Part 4—Disclosures and misrepresentations
Division 1—Insured’s duty of disclosure
2B Eligible contracts of insurance (Act, s21A(6))
3 Duty of disclosure—written notice
3A Duty of disclosure—reminder notice
3B Duty of disclosure—oral notice
Division 3—Remedies for non‑disclosure and misrepresentations by insured
4 Prescribed rate of interest—subparagraph 30(2)(b)(i) of the Act
Division 4—Key Facts Sheets
4A Application of Division
4B What is a Key Facts Sheet?
4C Insurer’s obligation to provide Key Facts Sheet
Part 5—The contract—standard cover
Division 1—Motor vehicle insurance
5 Prescribed contracts
6 Prescribed events
7 Exclusions
8 Minimum amounts
Division 2—Home buildings insurance
9 Prescribed contracts
10 Prescribed events
11 Exclusions
12 Minimum amounts
Division 3—Home contents insurance
13 Prescribed contracts
14 Prescribed events
15 Exclusions
16 Minimum amounts
Division 4—Sickness and accident insurance
17 Prescribed contracts
18 Prescribed events
19 Exclusions
20 Minimum amounts
Division 5—Consumer credit insurance
21 Prescribed contracts
22 Prescribed events
23 Exclusions
24 Minimum amounts
Division 6—Travel insurance
25 Prescribed contracts
26 Prescribed events
27 Exclusions
28 Minimum amounts
Division 7—Limits on minimum amounts
29 Limits on minimum amounts
Division 8—Flood insurance
29A Definition for Division 8
29B Small businesses
Overview
The Insurance Contracts Regulations 1985 were enacted to provide detailed rules and requirements for insurance contracts in Australia, supplementing the broader legislative framework established by the Insurance Contracts Act 1984. The primary objective of these regulations is to ensure transparency, fairness, and clarity in the insurance industry by specifying the conditions under which insurers can offer coverage, the information that must be disclosed to policyholders, and the remedies available in cases of non-disclosure or misrepresentation. These regulations address various types of insurance, including motor vehicle, home buildings, home contents, sickness and accident, consumer credit, and travel insurance, by detailing prescribed events, exclusions, and minimum payout amounts for claims. The regulations were made under the authority of the Insurance Contracts Act 1984 and have been amended over the years to adapt to changes in the insurance landscape and to address gaps in consumer protection and market practices.
Scope and Application
The Insurance Contracts Regulations 1985, made under the Insurance Contracts Act 1984, apply to insurance contracts in Australia. They regulate the conduct of insurers and insureds, focusing on disclosures, misrepresentations, and the provision of Key Facts Sheets. These regulations apply to a variety of insurance contracts including motor vehicle, home buildings, home contents, sickness and accident, consumer credit, and travel insurance. The regulations specify prescribed events, exclusions, and minimum amounts for claims related to these contracts. Additionally, they detail the obligations of insurers to provide written notices and Key Facts Sheets to insureds. The regulations also outline the consequences for non-disclosure or misrepresentation by insureds, including the potential for contract cancellation or reduction of claim payments. Furthermore, the regulations include transitional arrangements for certain amendments, such as those introduced by the Insurance Contracts Amendment Regulation 2012 (No. 1). The Act extends its application through subordinate instruments, which may include further regulations or guidelines issued under the authority of the Act.
Key Provisions
- The Insurance Contracts Regulations 1985 outline the requirements and obligations for various types of insurance contracts under the Insurance Contracts Act 1984. These regulations specify the types of insurance contracts that must adhere to the disclosure and misrepresentation rules, including motor vehicle, home buildings, home contents, sickness and accident, consumer credit, and travel insurance. They also detail the prescribed events, exclusions, and minimum indemnity amounts for these insurance types. For example, motor vehicle insurance must cover loss or damage to the vehicle and liability for damage to other property, excluding depreciation, wear and tear, and certain uses of the vehicle. The regulations also mandate the provision of Key Facts Sheets for home buildings and home contents insurance contracts, detailing the required content and format. Additionally, they impose duties of disclosure on insured persons, requiring them to inform insurers of any relevant information that could affect the insurer's decision to provide coverage. Failure to disclose can result in contract cancellation, claim refusal, or other penalties. The regulations further specify the interest rate for withheld payments and the circumstances under which an insurer may vary or cancel a provision of a contract related to war or terrorism risks. Compliance with these regulations is essential for insurers and insured parties to ensure transparency and fairness in insurance contracts.
- Area of Law
- Insurance Law
- Instrument
- Regulation
- Concepts
- Definitions & Interpretation
- Commencement Provisions
- Reporting & Disclosure Obligations
- Licensing & Registration
- Regulatory Standards
- Extraterritorial Application
- Civil Penalty Provisions
