ASIC grants relief for insurers to reduce risk of family violence 

ASIC has issued a new legislative instrument, ASIC Corporations (Cash Settlement Fact Sheet and Confirming Transactions) Instrument 2022/809, which exempts insurers from certain notification obligations in instances that carry the risk of family violence.

Insurers are required to notify joint policyholders when offering to settle a claim by cash payment, by providing a Cash Settlement Fact Sheet (CSFS) and transaction confirmation to each insured under the policy.

The new legislative instrument will exempt insurers from providing these notifications, should the insurer reasonably believe that the information provided may pose a risk of family violence.

The exemption is intended to prevent instances where the CSFS discloses the location of the victim of family violence, or alerts the perpetrator to the claim, thus providing them the opportunity interfere with the cash settlement.

The exemption also covers a broad definition of family violence, which includes physical sexual, emotional, psychological and economic abuse, as well as behaviour that is threatening, coercive and exerting control to cause fear for safety or wellbeing.

The relief instrument commenced on 26 September 2022 and expires in five years.

For more information, read ASIC’s Explanatory Statement on the instrument here.