How Does the General Insurance Code of Practice Protect You?
In a Nutshell: The General Insurance Code of Practice is a voluntary industry code that sets minimum standards for how insurers must treat you — from buying a policy to making a claim. Most major car insurers in Australia are Code subscribers. The Code sets rules on claims handling, complaints, financial hardship, and vulnerable customers.
What Is the Code of Practice?
| Feature | Details |
|---|---|
| Full name | General Insurance Code of Practice |
| Administered by | Code Governance Committee (independent body) |
| Who subscribes | Most major Australian insurers (NRMA, AAMI, Allianz, Budget Direct, Youi, QBE, GIO, etc.) |
| Legal status | Voluntary — but subscribers are contractually bound |
| Consequences of breach | Code can fine subscribers, require remediation, or name and shame |
| Last updated | 2021 (most recent revision) |
Key Protections Under the Code
| Area | What the Code Requires |
|---|---|
| Buying a policy | Clear information about what's covered and what's not — in plain language |
| Claims handling | An initial decision within 10 business days (simple claims) — or regular updates if it takes longer |
| Complaints | You must get a response within 15 business days for a standard complaint |
| Financial hardship | Insurers must offer flexible payment options if you're experiencing hardship |
| Vulnerable customers | Extra support for people affected by domestic violence, mental health issues, or language barriers |
| Cooling-off period | 21 days to change your mind — you can cancel and get a refund (minus time on cover) |
| Catastrophe / natural disaster | Special procedures — insurers must prioritise and communicate clearly |
| Unreasonable delay | If an insurer delays unreasonably, they must tell you why and offer options |
Claims Handling Standards
| Claim Type | Maximum Timeframe Under the Code |
|---|---|
| Simple claim acknowledged | 1 business day |
| Simple claim decided | 10 business days (from receiving all info) |
| Complex claim update | Every 10 business days |
| Complaint acknowledged | 1 business day |
| Complaint resolved | 15 business days |
| Complaint escalated | 30 business days |
| Financial hardship response | 14 days from request |
💡 If your insurer misses these deadlines, you can escalate to the Code Governance Committee or AFCA.
Who Is NOT Covered by the Code?
| Insurer/Arrangement | Code Applies? |
|---|---|
| NRMA, AAMI, Allianz, Budget Direct, Youi, QBE, GIO | ✅ Yes — all are Code subscribers |
| Bingle | ⚠️ Also a Code subscriber (Auto & General) |
| Some smaller or specialist insurers | ⚠️ Some may not be subscribers — ask before purchasing |
| Overseas insurers not authorised in Australia | ❌ Not covered — buy from Australian-authorised insurers |
| Insurance purchased through a broker (commercial) | ✅ Yes — still covered by the Code |
How to Use the Code
| Situation | What to Say to Your Insurer |
|---|---|
| Claim is taking too long | "Under the General Insurance Code of Practice, you must decide my claim within 10 business days or update me every 10 business days." |
| Complaint not being handled | "The Code requires you to resolve my complaint within 15 business days." |
| I can't afford to pay monthly | "I'm requesting financial hardship assistance under the Code." |
| You're not communicating with me | "The Code requires you to keep me informed about my claim." |
What Happens If an Insurer Breaches the Code?
| Consequence | How It Works |
|---|---|
| Internal remediation | Insurer must fix the breach for you (e.g., pay your claim, compensate for delay) |
| Code Governance Committee investigation | The independent committee can investigate systemic breaches |
| Fine | The Code Committee can fine insurers up to $500,000+ for serious or systemic breaches |
| Public naming | Breaches are publicly reported — affects their reputation |
| Loss of Code subscription | In extreme cases, an insurer can be removed from the Code — though this is very rare |
Key Takeaway
- The General Insurance Code of Practice sets minimum standards for how insurers treat customers.
- Most major Australian car insurers are Code subscribers.
- Claims must be acknowledged in 1 day and decided in 10 business days (simple claims).
- Complaints must be responded to in 15 business days.
- The Code provides protections for financial hardship and vulnerable customers.
- 21-day cooling-off period — change your mind and get a refund.
- If an insurer breaches the Code, you can complain to the Code Governance Committee.
- Always reference the Code when holding your insurer accountable.
Last updated: July 2026
Disclaimer: This article provides general information about the General Insurance Code of Practice in Australia. The Code, its provisions, and enforcement mechanisms may change. Visit codeofpractice.com.au for the current Code.