ASIC has granted relief to exempt insurers from providing certain notifications where doing so creates risks of family violence. The relief is outlined in the legislative instrument, ASIC Corporations (Cash Settlement Fact Sheet and Confirming Transactions) Instrument 2022/809.
Since 1 January 2022, insurers have been required to provide a Cash Settlement Fact Sheet (CSFS) and transaction confirmation to joint policyholders when they offer to settle a claim by a cash payment. The ASIC relief seeks to reduce the risk of family violence occurring as a result of insurers providing these notifications to joint policyholders.
These notifications may contain information that could place victims of family violence at risk of harm. For example, a CSFS may identify the location of the victim or provide an opportunity for the perpetrator of violence to interfere with the cash settlement.
To address these concerns, ASIC has granted relief to insurers so that they do not need to provide these notifications where they reasonably believe that providing them would pose risks of family violence.
ASIC expects this measure to supplement commitments made in industry Codes of Practice to customers at risk of, or experiencing, family violence. These commitments include ensuring insurers have policies, systems and processes in place to identify and safely respond where they know or reasonably believe a customer is experiencing family violence.
The relief forms part of ASIC's commitment to protecting vulnerable consumers.
Insurers will be required to keep records of the reasons for their belief that providing a CSFS and transaction confirmation would pose risks of family violence for a period of 3 years.
The relief will expire in 2027. ASIC will review the operation and appropriateness of the instrument before it expires.
