EXPLANATORY STATEMENT
STATUTORY RULES 1990 NO. 444
INSURANCE CONTRACTS REGULATIONS
ISSUED BY AUTHORITY OF THE TREASURER
Section 57 of the Insurance Contracts Act 1984 (the Act) provides for the payment of interest by an insurer at the prescribed rate where the insurer has unreasonably withheld moneys due to an insured.
Regulation 32 of the Insurance Contracts Regulations prescribes the interest rate payable by insurers on amounts unreasonably withheld.
The amendment to regulation 32 of the Regulations increases the prescribed interest rate on amounts unreasonably withheld from 11 per cent to 13 per cent.
Insurance and Superannuation Commission
CANBERRA ACT