What does the Life Insurance Code of Practice mean for you?

The Life Insurance Code of Practice was developed to help improve service standards for customers who hold life insurance products. It was also developed as a way to build trust between insurers and consumers knowing that particular standards will be met.

Organisations who subscribe to the Code commit to the obligations of the Code and abide by key promises when dealing with you and your insurance needs.

The Life Code Compliance Committee (Life CCC) is an independent body that administers and enforces the Code. Their aim is to improve the life insurance industry’s service to customers by monitoring compliance, providing education and support, and imposing sanctions if required.

The life insurance industry has voluntarily developed the Life Code to protect you, the customer. The 10 promises made by subscribers to the Life Code are:

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 Life 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 Life Code.

10. We will be accountable for Life Code requirements, and the Life CCC can sanction us.

The Code was implemented to help you receive a consistent and high standard of service from your insurer. Click here for more information about your rights under the Code.

If you are concerned that your insurer is breaching the code, you can refer the matter to us for investigation- Report an Issue. The Committee’s role is to monitor compliance and investigate breaches against the Code. They will then recommend corrective action if needed. If you require a specific outcome such as compensation, an apology, or for your problem to be fixed – you should make a complaint to your insurer or the Australian Financial Complaints Authority.