NSW reviews outdated insurance law
The NSW Law Reform Commission hopes to remove uncertainty for insurers, businesses and consumers by reviewing a 70-year-old insurance law.
Section 6 of the Law Reform (Miscellaneous Provisions) Act 1946 was introduced to protect people from parties attempting to escape their financial obligations.
There are concerns the provision does not fit with federal consumer laws or with modern insurance, particularly directors’ and officers’ cover.
“It’s important we have laws in place that are easy to understand and provide maximum protection for consumers,” Attorney-General Gabrielle Upton said today.
“However, the legislation is complex and its impact on insurance policies is unclear.
“Company directors, for example, need certainty about whether their insurance can fund their costs to defend a claim. This is why I have asked the Law Reform Commission to review the law, to help work out whether it is still effective.”
