The Insurance Contracts Amendments Bill 2012 (the Bill) has been passed by both Houses of Parliament.

The Bill introduces a legislative framework to establish regulations for:

• a standard definition of “flood” for riverine flooding in insurance contracts of home building and home contents (combined and individual policies); small business; and strata title insurance policies; and
• a single-page Key Facts Sheet for home building and home contents insurance policies (combined and individual) which will allow consumers to see, at a glance, what is covered under their insurance policy.

The details of these measures, including the final wording of the standard definition of “flood” and the specific content of the Key Facts Sheet, will be made in regulations contained in the Insurance Contracts Regulations 1985. The draft Regulations for the standard definition of flood were released for public consultation late last year and will be finalised shortly.

A discussion paper seeking public comment on the content, format, structure and provision of the Key Facts Sheet was released earlier this year and the closing date for submissions is 23 March 2012. Prototypes of the Key Facts Sheet will be consumer-tested before the final content, format and structure of the Key Facts Sheet is settled.