ASIC’s draft information sheet ‘Claims handling and settling: How to comply with your AFS licensing obligations’, released on Friday, noted that advisers providing a claims handling and settling service on behalf of an insurer would now need to hold a claims handling authorisation as part of their licence.
The sheet noted that “claimant intermediaries”, or those who “carry on a business of representing insured people in pursuing a claim and do so in return for any benefit, monetary or otherwise”, would also need to hold an AFS licence.
However, ASIC said exemptions would apply for general purposes under section 911A(2)(e)(k) of the Corporations Act for super trustees and others commonly involved in the claims process, such as loss adjusters or investigators. ASIC said trustees’ obligations to members in the claims handling process were covered under their licence authorisation to provide “a superannuation trustee service”, and that all super entities would need to hold this type of authorisation by 1 January 2021.
The sheet also stated that “professional legal services provided by a lawyer in a professional capacity relating to insurance claims handling and settling” would be among the services specifically exempt from the requirements.
Commenting on the exemption, a spokesperson for compensation law firm Maurice Blackburn said lawyers acting in the space were already “regulated by their own industry professional practice rules, hold practicing certificates and are subject to Legal Services Commissioners”.
The reforms around claims handling are contained in royal commission legislation introduced to Parliament earlier this month, and are due to come into effect by 1 January 2022.
This is absolutely disgusting.
At first I had hope that this was an intelligent move to get rid of some of the disgraceful profiteering some vultures get involved with (lawyers mainly, but there’s been some other “service provider” types too).
I had hoped that those with insurance qualifications would just be included as already ticked off as being the experts.
But, of course not, that is far too sensible for the corrupt cesspit that is ASIC.
33 years in the industry giving advice and looking after clients, distinction in the recent FPC 004 Insurance Advice unit, multiple insurance claimants now that I look after and now I need more qualification??????????????
When will this stupidity end??????????????????????
The lawyers will love this one. The adviser in many cases creates the wealth and then the lawyers take over. Seen it happen many times.
Less Red Tape Costs says ASIC = Another bloody registration, another bloody form, another cost for Advisers.
[b]ASIC, you tell complete and utter LIES.
Or
ASIC, you have no idea of what you are doing, what you say, you do the complete opposite !!!![/b][b][/b]
Typical ASIC, the problem isn’t advisers who provide a great service to clients at claim time, often for free. It is the ambulance chasers who take massive percentages of any claims under the no win no fee ruse. Yet ASIC makes them exempt?
Recently had a death claim passed to us where another adviser was unable to get it through as the client had cancelled policy 15 months prior to his death. His solicitor had quoted him $50,000 plus gst. We quoted $3,300 & got the 500,000 claim through in 2 weeks. Where’s the justice? We need another qualification. You know, I don’t know why we even bother….?
Hi Thomas, great outcome, although how did you get a claim on a cancelled policy 15 months later? especially when Terminal Illness definitions are a standards 12 months?
Where would my Monday be without some additional insane compliance and red tape to deal with. I simply do not get it.
it’s simple.
ASIC IS CORRUPT.