Treasury has released for consultation an exposure draft Insurance Contracts Amendment Bill 2013 which contains the measures previously contained in a 2010 Bill (which lapsed because of the election) with four proposed refinements.

The key measures in the Bill include:
•removing impediments to the use of electronic communication for statutory notices and documents;
•giving powers to the regulator, Australian Securities and Investments Commission, to take action to address breaches of the duty of utmost good faith by insurers, including in respect of claims handling; and
•making the duty of disclosure easier for consumers to understand and comply with, especially at renewal of household/domestic insurance contracts.

The proposed refinements address concerns raised by key stakeholders in relation to:
•the insured’s duty of disclosure;
•remedies of the insurer: life insurance contracts;
•the application of duty of disclosure changes; and
•bundled life insurance contracts.