Brought to you by:

Victoria fails to pass consumer building law

Attempts to reform home building laws in Victoria and replace privately run builders’ warranty insurance (BWI) have failed.

The State Government could not get a new bill through Parliament before it was suspended last Friday for the state election.

The Buildings Legislation Amendment Bill would replace BWI with a state-run consumer protection fund and a new dispute resolution procedure.

QBE is the last remaining BWI insurer in the Victorian market, and the Victorian Managed Insurance Authority underwrites its cover.

The new fund was originally due to start providing cover last July under industry regulator the Victorian Building Authority.

Consumer Action CEO Gerard Brody says under the current home BWI scheme, consumers can only seek cover for incomplete or faulty work if their builder is dead, insolvent or has disappeared. The proposed fund would ensure consumers have a remedy.

“Home BWI has long been referred to as junk insurance, because it’s so hard to claim,” he said.

Builders Collective of Australia President Phil Dwyer says the current system is not serving consumers or builders.

He told insuranceNEWS.com.au the Government has assured him the legislation will be presented in the first session of parliament, if the Government re-elected.

The Opposition does not support the bill in its current form.