CommInsure supports and welcomes the Life Insurance Code of Practice (the Code), released by the Financial Services Council (FSC).
The Code has been designed to raise the customer service standards in the Australian life insurance industry and protect the rights of policyholders.
The Code was voluntarily developed by the life insurance industry, through the FSC, to:
- promote high standards of service to consumers
- provide a benchmark of consistency within the industry
- establish a framework for professional behaviour and responsibilities.
The Code sets out timeframes for insurers to respond to claims, complaints and requests for information from customers and is monitored by an independent committee to ensure effective compliance by life insurers. Insurers can be sanctioned if they do not correct breaches of the Code.
Section 8.18 of the Life Insurance Code of Practice requires CMLA to suggest to customers receiving a lump sum claim payment to seek financial advice to help manage the claim payment. CMLA has identified that not all payment letters include this suggestion and has rectified this effective 25 November 2019.