On 4 February 2019 the Government announced it would extend the UCT regime to insurance contracts in response to Recommendation 4.7 of the Financial Services Royal Commission. This consultation seeks stakeholder views on the exposure draft Bill, draft Explanatory Memorandum and draft Regulation Impact Statement.
Since 2010 UCT laws have applied across the economy in most sectors that use standard form contracts in their dealings with consumers. Although the UCT laws apply to most financial products and services regulated by the Australian Securities and Investments Commission Act 2001 (ASIC Act), they do not currently apply to insurance contracts regulated under the Insurance Contracts Act 1984 (Insurance Contracts Act). The draft Bill extends the UCT regime to insurance contracts.