On 23 November 2011, the Government introduced into the Parliament the Insurance Contracts Amendment Bill 2011 (the 2011 Bill). The 2011 Bill contains two measures to improve consumer understanding of insurance policies.
One of the measures, the introduction of a Key Facts Sheet (KFS) for Home Building and Home Contents (HBHC) insurance policies, will allow consumers to quickly and easily check the basic terms of the insurance policy, including the nature of cover and any key exclusions. The introduction of KFS’s will also help consumers to compare the features of various insurance policies and select appropriate insurance products for their needs.
While the legislative structure for the KFS will be established in the Insurance Contracts Act 1984, the content, format, structure and provision of the KFS will be contained in the Insurance Contracts Regulations 1985.
To ensure that the policy intent of the KFS is achieved comments are sought on the proposals to give effect to KFSs for HBHC insurance policies.