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Deferred sales model regulations finalised after consultations

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The Federal Government has finalised deferred sales model exemption regulations for the new regime aimed at preventing high pressure sales tactics.

The finalised rules released last week include an exemption for business-related add on insurance products where the premium exceeds $1000.

“This will ensure that the deferred sales model protects businesses most at risk of being pressure sold add-on insurance products but maintains an appropriate balance whereby larger businesses can continue purchasing add-on insurance where it meets their business needs,” Assistant Treasurer Michael Sukkar said.

Exempt classes include compulsory third party (CTP) for motor vehicles, third party property, fire and theft for vehicles and vessels, comprehensive cover for cars and vessels, insurance sold within super, transport and delivery, travel insurance, home building, home and contents and landlord insurance.

Mr Sukkar says the exemptions ensure the model is implemented carefully, allowing small businesses and consumers to access the insurance they need on a timely basis and avoiding inadvertently impacting economic recovery from COVID-19.

The reforms, which take effect on October 5, introduce a four-day pause on the sale of add-on products after a customer has entered into a commitment to acquire the main item or service.