The Financial Services Council (FSC) says the updated Life Insurance Code of Practice will include provisions to support consumers experiencing family and domestic violence.

FSC says the revamped Code, which will come into force on July 1 next year following a 12-month transition, will also extend “indefinitely” the moratorium on genetic tests in life insurance.

“The FSC is committed to improving consumer outcomes across the life insurance industry, especially for vulnerable people,” CEO Blake Briggs said.

FSC says the additional protection measures have been introduced after a consultation with stakeholders including submissions from the genetics community, consumer advocates and the life insurance industry.

The additions come after the FSC announced in June that the Code has been updated with more than 50 new provisions to enhance consumer protections. It’s the first update to the Code since the FSC introduced it in 2016.

Changes announced in June include a financial penalty of up to $100,000 for some significant breaches in the form of a community benefit payment to a charity and banning blanket mental health exclusions in the standard terms and conditions on all newly designed contracts.

In relation to the latest additions, the Code requires subscribers to develop and publish on their website a policy to support customers who are experiencing family and domestic violence.

FSC, which owns the Code, has also developed guidelines addressing 11 areas that policies may cover after consumer advocates asked for consistency in the approach taken by subscribers.

The guidelines include referring customers and employees to specialist support services, prioritising safety for affected customers and minimising the number of times an affected customer needs to disclose information about their abuse.

“These guidelines will help industry navigate this difficult and sensitive area and bring a degree of consistency in how industry supports people experiencing family and domestic violence,” Mr Briggs said.

FSC says extending the moratorium on genetic tests indefinitely means consumers who are tested now will never need to share their genetic test results with their life insurer and so won’t be declined for life insurance later.

The peak body and the life industry will give “immunity” to any genetic test taken while the moratorium is in place, by maintaining the moratorium indefinitely for those consumers even if it ends for subsequently taken tests.

FSC says consumers will now be able to undergo a genetic test without fear that the result could stop them from taking out life insurance.

“We’re safeguarding consumers by including the moratorium in the new Life Code, meaning there will be independent oversight by the Life Code Compliance Committee and the power to sanction Code subscribers who do not comply,” Mr Briggs said.

“The Moratorium has been in place since July 2019, allowing Australians to take out life insurance benefits up to prescribed limits without having to disclose an adverse genetic test result.”

The moratorium was scheduled to last until at least June 30 2024, according to the Life Code Compliance Committee.

Committee Chair Jan McClelland says the additional provisions mark “a great development” for consumers.

“Both additions are significant for thousands of consumers, and it is important that the Code has oversight now,” she said.

“With the Committee’s power to sanction, adding these protections to the Code is a meaningful step that will benefit consumers greatly.”