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Regulation sets out new disclosure wording

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The Federal Government has introduced a new regulation concerning disclosure statements in insurance contracts.

It provides revised wording to be used in general insurance disclosure documents, explaining the duties of the insured.

Wording to inform clients when an eligible contract takes effect also features in the regulation, along with wording to use when an eligible contract is renewed.

The regulation took effect when it was registered in the Federal Parliament on April 16.

Insurers can use both versions of written notices until December 28, when new written notices are introduced.

The new disclosure statements replace those in the Insurance Contracts Amendment Act that took effect in June 2013.