New Life Code slammed
Consumer groups and insurance lawyers have criticised a new life insurance code of conduct, saying it fails to protect people from unethical behaviour and only covers a fraction of the industry.
The code, released by the Financial Services Council (FSC), does not cover people with life insurance policies held through their super fund, about 70 per cent of policyholders.
The FSC has set minimum standard medical definitions for heart attack, stroke and cancer. They will be released for public consultation, according the Sydney Morning Herald.
It has also set a time limit of 12 months for insurance claims, which consumer groups say is too long, and pledges to put limits on private investigator surveillance but only in a “medical or health facility,” court or “in any bathroom, change room, lactation room or inside your house.”
The Code requires insurers to improve disclosure to customers, provide greater transparency in communications, decide claims within set timeframes, limit the use of surveillance, and provide additional support for vulnerable consumers.
The FSC has also developed minimum standard medical definitions for heart attack, stroke and cancer, which will be released for public consultation today. After the consultation period, during which time the FSC will be seeking the input of external medical specialists, the definitions will be submitted to the Australian Competition and Consumer Commission (ACCC) for approval.
