The reference arose out of a series of complaints by insured motorists over a period of years. Research conducted by the Committee revealed that the majority of complaints were in regard to:
- the unfairness to the insured of the use of compulsory arbitration as a means of settling disputes, particularly where complainants are obliged to bear their own costs regardless of the outcome of the dispute;
- the unfairness of certain conditions, warranties and exclusions forming part of most policies and the harshness of insurance companies in enforcing their strict legal rights; and
- the unnecessarily small size of print in some policies.
Terms of Reference
In 1968 the Committee was asked to consider the law and practice relating to motor vehicle insurance and whether any alteration to the law was desirable.
Outcomes
No legislative action has been taken to implement the Committee’s recommendations; however, the State Government Insurance Office moved quickly to implement the major recommendations administratively.
