The Australian Securities & Investments Commission (ASIC) reported that the Full Federal Court has dismissed its appeal and upheld the earlier Federal Court finding that a term in home and contents insurance policies issued by Auto & General Insurance Company Limited was not unfair. The term required policyholders to notify Auto & General if ‘anything’ changed in their home and contents, and ASIC is considering the decision. ASIC had argued the term imposed an unclear disclosure obligation, suggested a broader right to refuse or reduce claims than is available under the Insurance Contracts Act, and could mislead or confuse policyholders about their obligations and rights. The term appeared across multiple product disclosure statements, including for Budget Direct, Australia Post, ING, Catch, Virgin and Qantas branded home and contents products; Auto & General issued supplementary product disclosure statements on 4 May 2023 that replaced the term and then issued new product disclosure statements on 21 September 2023 containing the replacement term. The proceeding began on 4 April 2023 and was dismissed at first instance on 22 March 2024; ASIC filed its appeal on 19 April 2024, which was heard on 28 August 2024.
Australian Securities & Investments Commission 2025-06-05
Australian Securities & Investments Commission appeal dismissed as Full Federal Court finds Auto & General ‘anything changed’ notification term not unfair
The Australian Securities & Investments Commission (ASIC) announced that the Full Federal Court dismissed its appeal, upholding a previous ruling that a term in Auto & General Insurance Company Limited's home and contents insurance policies was not unfair. The term required policyholders to notify the insurer of any changes in their home and contents. Auto & General has since replaced the term in its product disclosure statements.