The industry has made a renewed push for contents-only products to be exempt from the four-day pause rule under the deferred sales model for add-on insurance in a submission to Treasury. 

Treasury consulted on draft regulations to extend the exemption to 10 products, including comprehensive motor and home building insurance, for another five years to 2031 after a review earlier this year concluded the covers “provide benefits” to consumers. 

“While the Insurance Council supports extending the existing classes of exempt add-on insurance … we previously recommended that contents only insurance be included as part of the current exemptions,” the industry peak body said in the submission.  

“Contents-only insurance is an important product for strata property owners and landlords, who often require cover for assets not insured under strata policies, including fixtures, fittings, structural additions, carpets and windows coverings. 

“Excluding contents-only insurance from the exemptions may create an unintended gap in coverage and make it more difficult for some consumers to obtain appropriate, timely protection.” 

The council also urged Treasury to consider a “permanent incorporation” of the exemptions into legislation 

“A permanent legislative solution would maintain strong consumer protection while avoiding unnecessary delays in access to essential insurance cover and reduce the risk of coverage gaps that expose consumers to foreseeable uninsured losses,” the submission said.