ASIC has registered ASIC Corporations (Cash Settlement Fact Sheet and Confirming Transactions) Instrument 2022/809 to provide relief to exempt insurers from providing certain notifications where doing so creates risks of family violence.

Since 1 January 2022, insurers have been required to provide a Cash Settlement Fact Sheet and transaction confirmation to joint policyholders when they offer to settle a claim by a cash payment. Background.

The ASIC relief seeks to reduce the risk of family violence occurring as a result of insurers providing these notifications to joint policyholders.

These notifications may contain information that could place victims of family violence at risk of harm. For example, a CSFS may identify the location of the victim or provide an opportunity for the perpetrator of violence to interfere with the cash settlement.

To address these concerns, ASIC has granted relief to insurers so that they do not need to provide these notifications where they reasonably believe that providing them would pose risks of family violence.

Insurers will be required to keep records of the reasons for their belief that providing a CSFS and transaction confirmation would pose risks of family violence for a period of 3 years.

The relief will expire in 2027.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.