Insurance
Insurance helps protect you from financial loss when something goes wrong.
There are many different types of insurance policies including car, house, contents, health, travel and life insurance.
When buying insurance, you should carefully read all the policy’s terms and conditions carefully so it meets your needs.
If you have an insurance policy you are always entitled to make a claim, and have it assessed by your insurer.
If you make an insurance claim and it’s refused or unreasonably delayed, you should get legal advice.
If you have a complaint or dispute with your insurance provider, you should try and resolve this with your provider. If the matter can’t be resolved the Australian Financial Complaints Authority (AFCA) may be able to help. Get legal advice.
The Insurance Law Service has factsheets and information about insurance.
Buying insurance
Before buying insurance you should read all of your insurance policy’s terms and conditions carefully to make sure it meets your needs.
An insurance policy is the document that sets out what is covered by your insurance provider under your insurance contract.
You should keep a copy of the insurance policy and your certificate of insurance in a safe place. If your copy is lost or destroyed, you can contact your insurer to get another copy.
When buying insurance, the insurance company may give you a cover note—this is a temporary insurance cover until your formal insurance policy is processed and issued.
Sometimes, instead of giving you a cover note, insurers may opt for a cooling-off period in the policy, during which they can choose to refuse a claim.
Disclosure
When buying insurance you must tell the insurer anything you know which is relevant to their decision to accept the insurance. For example, if you’re applying for car insurance, you may need to answer questions about your driving history and your insurance claims history.
This is called a duty of disclosure. If you fail in your duty of disclosure, your future claims may be rejected. You should get legal advice if you make a claim and it’s rejected because you haven’t met your duty of disclosure.
Making an insurance claim
If you suffer a loss which is covered by your insurance policy, you can make a claim on your insurance. To make a claim, you must follow the insurance company's claims process.
You’re entitled to make a claim to your insurer, and have it assessed by the insurer even if you think that you may not be covered.
You should notify your insurer quickly of any loss you want to claim. Usually the insurance company will appoint a person known as an adjustor or assessor to investigate your claim.
Most insurers have agreed to comply with an insurance code of practice, which you can find on the Insurance Council of Australia’s website.
The Insurance Council of Australia is the industry body for most insurers who offer general insurance (home, building, contents, cars etc).
Car insurance
Insuring my car
When registering your car you‘re also covered for compulsory third party (CTP) insurance. This insurance only covers you for claims against you when you cause an accident, and somebody is injured.
If someone is injured as a result of a car accident and the person responsible for the accident doesn’t have compulsory third party insurance, the injured person may be able to get compensation for their injuries from a public fund called the nominal defendant. The nominal defendant may recover the debt from the uninsured motor vehicle’s owner or driver (or both).
If you cause an accident and damage somebody else's car (or home or belongings) it can become very expensive if you‘re not insured. Third party property damage insurance covers all claims made against you for damage caused to other people's property. It doesn’t cover you for damage to your own vehicle.
Comprehensive insurance covers you for damage to your vehicle regardless of who caused it. If you’re in an accident, you’ll only have to deal with your insurance company to get your car repaired.
For more information see car accidents.
Related publications:
Will I be covered if I’m charged with drink or drug driving?
Most policies won’t cover you if you drive while under the influence of alcohol or drugs. Check your insurance policy and get legal advice.
For more information see drink and drug driving.
Will I be covered if I drive unlicensed?
Your insurance policy may allow the insurer to refuse a claim if your car was driven by an unlicensed driver when the accident happened. Check your insurance policy and get legal advice.
For more information see traffic offences.
Will I be covered if I modify my car?
You need to tell the insurer if you make any modifications to your car, for example, if you mechanically accessorise your car or change it from the manufacturer's original specifications this may allow an insurer to refuse a claim under the policy.
Making a complaint about an insurance provider
If you have a dispute with your insurance provider, you should attempt to resolve your dispute through the insurer’s internal dispute resolution process. If you can’t resolve the complaint with the insurer, AFCA can resolve complaints and disputes between you and the insurer. Get legal advice.
AFCA can also help you if you have a dispute with another person's insurance company about motor vehicle property damage. Their role is to help resolve complaints between you and your insurer. If the matter doesn’t settle, they can make a determination. This will be binding on the insurer if you accept it. If you do not agree with the determination you can reject it and take your dispute to court.
You should get legal advice before lodging a dispute with AFCA.
Unfair contracts terms and insurance contracts
From 5 April 2021, unfair contract terms laws apply to insurance contracts. These laws are not retrospective and apply to new contracts of insurance.
These are national laws to protect consumers from unfair terms in standard form consumer contracts.
Standard form contracts are contracts with a business provider where there are limited opportunities for the consumer to negotiate the terms of the contract.
Get legal advice if you're worried about an unfair contract terms in your insurance contract.
Insurance claims handling is now a financial service
From 1 January 2022, insurance claim handling will be a financial service under the Corporations Act. Companies providing these services will need a licence under the Corporations Act and will be subject to the obligations under the Corporations Act when dealing with customers.
One of the biggest obligations is the requirement to act efficiently, honestly, and fairly when helping consumers with an insurance claim.
Get legal advice if you're worried about how an insurer is handling your insurance claim.
Funeral expenses policies
From 1 April 2020, funeral expenses policies are no longer exempt from the operation of the Corporations Act. Companies providing these services need a licence under the Corporations Act and are subject to the obligations under the Corporations Act when dealing with customers.
One of the biggest obligations is the requirement to act efficiently, honestly, and fairly when helping consumers with a claim.
Get legal advice if you're worried about how a company is handling your claim for funeral expenses or your claim under a funeral insurance policy.
Duty to disclose information to an insurer when applying for consumer insurance products
Currently, when a consumer is applying for a consumer insurance product they have a duty to disclose all relevant information about their circumstances to the insurer.
From 5 October 2021, this duty that consumers have to insurers will change. Consumers will now be under a duty to take reasonable care not to make a misrepresentation to an insurer when they apply for insurance.
Get legal advice if you've had an insurance claim denied because the insurer says you did not disclose information about yourself or your circumstances.
Deferred sales model for add on insurance products
From 5 October 2021, a deferred sales model applies to add on insurance products. It introduces a mandatory 4 day pause between the sale of a principal products or service and the sale of add-on insurance. For example, when you buy a car from a car yard they can still offer to sell you comprehensive motor vehicle insurance at the same time you buy the car but the car yard can't offer to sell you extra insurances such as tyre and rim or gap insurance until at least 4 days after you purchase the car.
Get legal advice if you're worried about insurance that you've purchases with a product like a car or any financial product (eg a credit card).
Complaints about life insurance or private health insurance
AFCA can help with complaints or disputes about life insurance cover and some types of superannuation. Get legal advice before lodging a dispute with them.
If your complaint is about private health insurance, which involves a private hospital or medical practitioners, the Private Health Insurance Ombudsman may help you.
Do I need legal advice?
You may need legal advice if you:
- have made an insurance claim that has been refused or unreasonably delayed
- have a dispute with an insurance company.
Get legal advice
We may give legal advice about insurance claims that have been refused or unreasonably delayed.
The following organisations may also be able to give you legal advice.
Caxton Consumer Law Service gives advice about consumer credit legal problems including insurance disputes.
Cairns Community Legal Centre – Consumer Law Service gives advice about consumer credit and consumer law matters for socially and financially disadvantaged community members.
Insurance Law Service gives free legal advice to anyone in Australia on insurance law or about resolving a dispute with an insurer.
Queensland Law Society can refer you to a specialist private lawyer for advice or representation.
Who else can help?
These services may also be able to help. They don’t give legal advice.
Insurance Council of Australia is the industry body for general insurance and has information for consumers about insurance on its website.
Australian Securities Investment Commission (ASIC) has information about all types of insurance and superannuation on its MoneySmart website.
AFCA investigates complaints about financial services including banks, financial institutions and insurance companies.
Private Health Insurance Ombudsman investigates complaints about private health insurance providers.
Disclaimer: This content is for general purposes only and not legal advice. If you have a legal problem, please contact us or speak to a lawyer. View our full disclaimer.
Last updated 14 February 2023