RLC in the Media: Proposed life code changes 'not enough': consumer advocates

Consumer advocates say they have many concerns over proposed updates to the Life Insurance Code of Practice in a joint submission to the Financial Services Council (FSC).

Insurance News reports.  

The Financial Rights Legal Centre, Consumer Action Law Centre and Redfern Legal Centre made 33 recommendations in the submission, covering concerns relating to mental health provisions, medical definitions, medical examinations and pre-existing conditions, claims and complaints timeframes.

The proposals also address financial and legal advice, pressure selling, financial hardship, family violence, vulnerability, funeral insurance and consumer credit insurance, and investigations, interviews and surveillance.

“In short there remains a lot to be desired in the latest draft of the life code,” Financial Rights Legal Centre Senior Policy and Advocacy Officer Drew MacRae told insuranceNEWS.com.au.

“There may be a small number of additional commitments here and there but there are some significant backward steps on areas like mental health, claims and complaints timeframes, and product design and distribution standards.

“All in all, pretty disappointing in the lead up to enforceability.”

The proposed changes to the life code are the first since the FSC launched it on June 30 2016, with a one-year transition for subscribers. Consultation on the draft version closed last week.

Read the full article here. (Insurance News.com.au, 4 October 2021)

Read the full submission