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Draft Insurance Code Puts Claims Standards Back in Focus

What the proposed reforms could mean when boat owners review cover

Draft Insurance Code Puts Claims Standards Back in Focus?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Insurance Council of Australia has released a draft General Insurance Code of Practice for feedback, marking a significant step in the industry’s push to strengthen customer protections.
Released on 24 June 2026, the draft is open for consultation until 21 July 2026 and is designed to make key obligations legally enforceable through insurance contracts.
For Australian boat owners, the development is worth watching closely because it speaks directly to long-running frustrations around claims delays, unclear communication and complex policy wording.

The draft includes several changes aimed at lifting service standards. Among the most notable is a proposed approach for automatic acceptance of certain home and motor claims after 12 months where no decision has been made, subject to defined exceptions. It also sets higher expectations for expert reports, clearer requirements for a primary claims contact, stronger rules around cash settlements and expanded support for customers experiencing vulnerability or family violence. While not every provision will translate neatly to marine policies, the direction of travel is clear: insurers are under pressure to make claims processes more transparent and accountable.

For the boating community, the practical relevance sits in the detail. A damaged hull, storm-affected mooring, stolen outboard or liability incident can involve assessors, repairers, salvage providers and policy exclusions. Delays or poor communication can quickly become costly, especially if a vessel is used for fishing tours, charter work or seasonal recreation. Pleasure craft and commercial marine arrangements may be treated differently depending on the policy, insurer and legal framework, so owners should not assume the Code automatically applies in the same way to every marine insurance product.

That makes renewal time especially important. Before choosing or renewing boat insurance, owners should ask whether the insurer subscribes to the Code, how the Code applies to the specific policy, what claims timeframes are promised, and how expert reports or repair disputes are handled. It is also sensible to compare cover options on more than price alone, including excesses, lay-up rules, mooring requirements, offshore limits, trailer cover, personal effects and liability protections.

This story also extends a broader theme across the insurance sector: claims performance is becoming just as important as underwriting appetite. Recent industry compliance concerns have highlighted that many customer problems arise not from policy design alone, but from administration, staffing, communication and systems. Boat owners can protect themselves by keeping maintenance records, photos, receipts, servicing history and mooring documentation in order. Where cover needs are complex, a marine insurance broker can help test the wording before a loss occurs, rather than after a claim becomes disputed.

Published:Wednesday, 24th Jun 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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Knowledgebase
Grace Period:
A time period after the premium is due during which an insurance policy remains in force even if the premium has not yet been paid.