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Life Insurance Code of Practice

What is the Life Insurance Code of Practice?

The Life Insurance Code of Practice (sometimes referred to as ‘the Code’) is a series of mandatory customer service standards that all life insurers who are members of the Council of Australian Life Insurers (CALI) need to comply with. These standards cover the key areas of life insurance sales and marketing practices, underwriting and claims and are designed to simplify the experience customers have with life insurers.

The objectives of the Code are:

a) to commit insurers to high standards of customer service

b) to seek continuous improvement within the life insurance industry;

c) to communicate with customers in plain language where possible; and

d) to increase trust and confidence in the life insurance industry.

Why is the Code of Practice important?

A contract of insurance is based on the principle of good faith which requires both the insurer and the customer to act honestly and fairly towards each other, and for the insurer to have the best regard for the customers’ interests. The Code of Practice will enhance consumer rights and lift industry standards in order to deliver better customer outcomes.

Key Code Promises

  1. We will be honest, fair, respectful, transparent, and timely when we communicate with you, and we will use plain language unless medical or other technical terminology is needed.
  2. We will ensure our staff and Authorised Representatives use appropriate sales and retention practices.
  3. We will offer extra support if you have trouble with the process of buying insurance or claiming.
  4. If we find that a sale was made using unacceptable sales practices, we will fix it, for example by issuing a refund or replacement policy.
  5. When you make a claim, we will explain the process and keep you informed about our progress assessing it.
  6. We will decide on your claim within the Code’s timeframes. But if we cannot, we will explain why and tell you how to make a Complaint.
  7. If we decline your claim, we will explain why in writing and let you know what to do if you disagree.
  8. We will restrict the use of investigators and Surveillance to preserve your right to privacy.
  9. The independent Life Code Compliance Committee (Life CCC) will monitor our compliance with the Code.
  10. We will be accountable for Code requirements, and the Life CCC can sanction us.

The insurers we compare are required to ensure that they are adhering to the obligated standards of customer service specified by the Code. You can read the Code or find out more about it on the Council of Australian Life Insurers (CALI) website. CALI has also developed a Consumer guide to Life Insurance Law and Life Insurance Premiums Fact Sheet.

Lifebroker’s Commitment

At Lifebroker we’re committed to delivering the best possible customer service standards and support CALI in promoting and monitoring the Code of Practice. All of the insurers we compare have adopted the Life Insurance Code of Practice and are committed to the standards of customer service set out in it.

The Life Code Compliance Committee (Life CCC)

The Life CCC is an independent body established to monitor compliance with the Code. Its aim is to ensure consistent and high-quality service standards are provided to customers by the life insurance industry. The Life CCC enforces the Code by monitoring compliance, investigating Code breaches and imposing sanctions where appropriate.

Download a full version of the Code.

Complaints

If you feel that your life insurer has not met the standards required by the Code, you can make a complaint here