ASIC is consulting on draft Regulations which extend the operation of the Deferred Sales Model (DSM) for add-on insurance class exemptions until 5 October 2031.
The Australian Securities and Investments Commission Regulations 2001 currently exempt certain classes of add-on insurance from the Deferred Sales Model regime.
The exemptions will expire on 5 October 2026. Background.
The DSM requires a four-day ‘pause’ between the sale of a principal product or service, such as a car, and the sale of an add-on insurance product which covers financial risks related to that principal product or service.
The effect of the Amending Regulations is that, for a further 5 years, insurers may sell the following classes of add-on insurance at the same time as the principal product or service:
* add‑on comprehensive motor vehicle or vessel insurance products;
* add‑on compulsory third party motor vehicle insurance products;
* add‑on home and contents insurance products;
* add‑on home building insurance products;
* add‑on landlord insurance products;
* add‑on limited motor vehicle or vessel insurance products;
* add‑on transport and delivery insurance products;
* add‑on travel insurance products;
* business‑related add‑on insurance products;
* superannuation‑related add‑on insurance products.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
