Nick Xenophon (SA, Independent) Share this | Hansard source

Without delaying this part of the debate, I would be grateful if the government could provide to me in due course the matters raised in terms of the Productivity Commission and the other concerns so there can be an ongoing discussion when consumer legislation is brought up again. I am disappointed that Senator Joyce last night was full of sympathy for my amendments but has no sympathy this morning! I will see if there is any sympathy from the coalition for my remaining two amendments.

Question negatived.

I move my amendment (5) on sheet 5898:

(5)    Schedule 1, item 1, page 9 (after line 23), after section 8, insert:

8A  This Part applies to contracts of insurance

                 Despite section 15 of the Insurance Contracts Act 1984, this Part applies to contracts of insurance.

Under section 15 of the Insurance Contracts Act, insurance contracts are excluded from the operation of any act, Commonwealth, state or territory based, that provides relief in the form of a judicial review of harsh or unfair contracts. This amendment is designed to delete this exemption. To allow insurance contracts to remain exempt from this bill would undermine its intent, which is to provide safeguards for consumers against unfair contract terms.

Insurance contracts can be incredibly confusing, lengthy and jargon filled and in most cases are not clearly understood by consumers. Indeed, it would be unfair to allow this exemption to remain to protect insurance contracts from being subject to unfair contract terms legislation. I commend these amendments. I do not see why the insurance industry should be exempt from legislation that is aimed at targeting unfair contract terms when one of the biggest sources of difficulties for consumers is the way that insurance contracts are drafted and interpreted, and consumers have to fight for their rights with a very unlevel playing field.