Process for insurers to give emergency payments streamlined

Insurers are now able to provide emergency payments to consumers without first giving them a cash settlement fact sheet (CSFS) and can be applied for insured consumers impacted by the severe weather and flooding in Queensland and northern NSW.

The relief, which formally came into effect on 11 February, applies in circumstances where the consumer has instructed the insurer they need immediate financial assistance, the verbal cash settlement has been made within 14 days and does not exceed $5,000.

“The relief streamlines the process for insurers to advance consumers up to $5,000 in cash in emergency situations without first having to issue a CSFS,” ASIC said in a statement.

“Having to provide a written CSFS when a cash settlement of up to $5,000 is offered may delay payments to consumers who need immediate access to small amounts of cash in urgent or emergency situations.”

The relief is subject to conditions and will expire in 2025.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

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Neil is also the host of the ifa show podcast.