Insurance Contracts Regulations 2017
made under the
Insurance Contracts Act 1984
Compilation No. 2
Compilation date: 19 February 2021
Includes amendments up to: F2021L00127
Registered: 10 March 2021
About this compilation
This compilation
This is a compilation of the Insurance Contracts Regulations 2017 that shows the text of the law as amended and in force on 19 February 2021 (the compilation date).
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 the Legislation Register (www.legislation.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 the Legislation Register 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.
Editorial changes
For more information about any editorial changes made in this compilation, see 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 the Legislation Register 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If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.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
3 Authority
4 Definitions
5 Definition of consumer credit insurance
Part 2—Disclosures and misrepresentations
Division 1—Insured’s duty of disclosure
7 Duty of disclosure—written notice
8 Duty of disclosure—reminder notice
Division 2—Remedies for non‑disclosure and misrepresentations by insured
10 Prescribed rate of interest
Division 3—Key Facts Sheets
11 Application of Division
12 What is a Key Facts Sheet?
13 Insurer’s obligation to provide Key Facts Sheet
Part 3—The contract
Division 1—Standard cover
Subdivision A—Purpose of Division
14 Purpose of Division
Subdivision B—Motor vehicle insurance
15 Prescribed contracts
16 Prescribed events
17 Minimum amounts
Subdivision C—Home buildings insurance
18 Prescribed contracts
19 Prescribed events
20 Minimum amounts
Subdivision D—Home contents insurance
21 Prescribed contracts
22 Prescribed events
23 Minimum amounts
Subdivision E—Sickness and accident insurance
24 Prescribed contracts
25 Prescribed events
26 Minimum amounts
Subdivision F—Consumer credit insurance
27 Prescribed contracts
28 Prescribed events
29 Minimum amounts
Subdivision G—Travel insurance
30 Prescribed contracts
31 Prescribed events
32 Minimum amounts
Division 2—Definition of flood
33 Prescribed contracts
34 Meaning of flood in prescribed contracts etc.
35 Meaning of small business
Division 3—General provisions relating to insurance contracts
36 Classes of contracts of insurance…
Overview
The Insurance Contracts Regulations 2017 were made under the Insurance Contracts Act 1984 and came into force on 1 April 2018. These regulations were introduced to provide clarity and detail on certain aspects of the insurance contracts, ensuring that the process is transparent and fair for both the insurers and the insured. The regulations were enacted by the Parliament of Australia, as part of its legislative framework to regulate the insurance industry and protect the interests of consumers. The primary objective of these regulations is to ensure that the insurance contracts adhere to the standards set by the Insurance Contracts Act 1984 and to provide a clear and consistent approach to the enforcement of the Act. The regulations cover a range of topics, including disclosures and misrepresentations by the insured, key facts sheets, standard cover for various types of insurance contracts, and general provisions relating to insurance contracts.
Scope and Application
The Insurance Contracts Regulations 2017, made under the Insurance Contracts Act 1984, apply to various types of insurance contracts and the conduct of insurers in Australia. These regulations aim to provide clarity and uniformity in the insurance industry, particularly focusing on disclosure duties, standard cover provisions, and key facts sheets for certain types of insurance contracts. The regulations apply to insurance contracts for motor vehicles, home buildings, home contents, sickness and accident, consumer credit, and travel insurance. The scope of the regulations includes the prescribed events that trigger insurance coverage, exclusions, and minimum amounts that insurers must pay out for claims. Additionally, the regulations cover the insurer's obligation to provide a Key Facts Sheet to the insured, detailing the terms and conditions of the insurance contract. The regulations extend their application across all states and territories in Australia, applying to both insurers and insured parties within the country. While the regulations establish baseline standards, they can be supplemented or modified by subordinate instruments or further legislative amendments, allowing for adjustments to meet changing industry standards or policy objectives.
Key Provisions
- The Insurance Contracts Regulations 2017 provide the primary operational framework for certain types of insurance contracts under the Insurance Contracts Act 1984. These regulations specify the minimum coverage requirements, prescribed events, and disclosure obligations for various insurance contracts, including motor vehicle, home buildings, home contents, sickness and accident, consumer credit, and travel insurance. For example, Section 16 specifies the prescribed events for motor vehicle insurance, including destruction or theft of the vehicle and liability for damage caused by the vehicle, among others. Section 20 outlines the minimum amounts for claims related to home buildings insurance, which vary depending on whether the claim is for destruction, damage, theft, or liability. Insurers are also mandated to provide Key Facts Sheets for certain contracts, detailing essential information about the insurance coverage (Section 13).
- The regulations impose specific obligations on both insurers and insured parties. Insurers must adhere to the minimum coverage requirements and provide clear, standardised disclosures to policyholders, including the form of written notices about the duty of disclosure (Schedule 1 and 3). Insured parties are required to disclose all material information that could affect the insurer’s decision to provide coverage and on what terms. Failure to disclose such information can result in the insurer avoiding the contract, reducing the coverage amount, or varying the contract terms (Sections 7, 8, 12, and 13).
- Breach of these obligations can result in civil consequences for the insurer or insured. For example, non-compliance with the duty of disclosure can lead to the avoidance or variation of the insurance contract (Section 7). Additionally, the regulations introduce prescribed offences that are subject to infringement notices (Section 39A). Penalties for breaches may include financial penalties as specified in the primary Act or other relevant legislation. The regulations also include transitional provisions to ensure a smooth transition from the previous Insurance Contracts Regulations 1985 (Section 40).
- Area of Law
- Insurance Law
- Instrument
- Regulation
- Concepts
- Definitions & Interpretation
- Repeal & Amendment
- Regulatory Standards
- Reporting & Disclosure Obligations
- Enforcement Powers
- Civil Penalty Provisions
