The Australian Labor Party has drafted legislation to remove the insurance claims handling exemption as it presses the Government to extend Parliamentary sittings and quickly deal with Hayne royal commission recommendations.

The ALP is using the Townsville flood aftermath to link Commissioner Kenneth Hayne’s recommendation that insurance claims handling should no longer be excluded from the definition of a financial service, meaning it would be covered by the obligation to act “efficiently, honestly and fairly”.

The amendment is one of a number of changes the ALP proposes to push through.

“After the terrible, devastating floods recently in Townsville – and, indeed, throughout north Queensland – thousands of Australians will be making insurance claims for damage to houses, to livestock, and other losses,” Opposition Leader Bill Shorten said during question time today.

“Why won’t the Prime Minister schedule extra sitting days so Parliament can debate and pass laws to force insurance companies to treat their customers fairly?”

The Coalition government has so far ruled out extending Parliament, which is due to finish sitting this week and return for the Federal Budget in April.

An election is expected in May, raising the prospect that royal commission recommendations requiring parliamentary approval will be delayed until the second half of the year.

The Australian Securities and Investments Commission (ASIC) said today it is pushing ahead with immediate action on matters that don’t need legislation, and provided an update on its progress.

“This update is a crucial document for ASIC as it highlights our important work to date of putting ASIC on a more effective strategic footing,” ASIC Chairman James Shipton said.

The ASIC enforcement team is investigating 12 matters that were case studies before the royal commission and has started proceedings related to MLC and Dover Financial Advisers.

“ASIC is assessing another 16 case studies to determine whether investigations should be commenced,” ASIC said.

Plans for ASIC to establish an Office of Enforcement are set to be completed this year as it takes a tougher approach toward misconduct, and the regulator has committed to working with the financial services industry on making some code of practice provisions enforceable by law.

The need for increased funding, as ASIC carries out its expanding responsibilities, is also flagged in the update.

“ASIC will work with the Government as it seeks to ensure that regulators remain appropriately resourced and as it considers what additional funding is required in the 2019-20 budget context.”