The Insurance Council of Australia Board has implemented changes to the new 2020 General Insurance Code of Practice. The Code was rewritten following the impact of Covid-19 and aims to enhance the rights and expectations of customers across Australia. Although the Code is a national industry code, its effects are felt in each jurisdiction because insurers operating in NSW, QLD, the ACT and WA are signatories. The new Code places a higher threshold on insurers and increases their obligations under the Insurance Contracts Act 1984 (Cth).
The standards in the Code apply to the relationship between insurers and insured customers, including expectations around claims handling, complaint procedures and the strict timeframes within which insurers must reach decisions.
The Code is intended to positively influence all aspects of general insurance. Across Australia, the Code requires that once relevant information is provided, an insurer must make a claims decision within 10 business days of receiving that information.
Insurers must make a final decision within 4 months of receiving a claim. If they do not meet this timeframe, they must inform the insured of the complaints process and consider whether the duty of utmost good faith has been breached.
These requirements apply consistently in NSW, QLD, the ACT and WA.
The Code provides enhanced protections for individuals who are experiencing financial hardship. These protections apply nationally and include the following:
Where a person qualifies for hardship support, an insurer may:
These obligations apply in the same way in NSW, QLD, the ACT and WA.
The Code is national, but the way it interacts with each jurisdiction can vary slightly because of local processes and regulatory environments. The key differences are summarised here.
| Jurisdiction | Application of the Code | Local Effect |
| NSW | Applies to all signatory insurers operating in NSW | Strengthens rights for NSW policyholders and aligns with existing consumer protections |
| QLD | Applies to all signatory insurers operating in QLD | Significant impact on Queensland insureds, especially regarding timeframes and complaint requirements |
| ACT | Applies to all signatory insurers operating in the ACT | Enhances protections for Canberra policyholders, especially after Covid-19 interruptions |
| WA | Applies to all signatory insurers operating in WA | Reinforces obligations in a jurisdiction with large regional communities and unique insurance challenges |
The Code formally launched in early 2020. All signatories were required to be fully compliant with the Code by 1 July 2021. It now represents the industry benchmark for insurer behaviour and customer protection across Australia.
The Code continues to guide the general insurance industry in meeting community expectations, particularly in the aftermath of Covid-19 and the ongoing unpredictability of life.
If you have any questions or concerns about your rights under the Code or need help with an insurance dispute, please contact Chamberlains and speak to one of our insurance law experts today.