The Financial Services Council (FSC) has called for the Federal Government to explain the differences between the National Disability Insurance Scheme (NDIS) and the National Injury Insurance Scheme (NIIS).

In its Budget submission paper, the FSC believes the distinction between the two schemes is not understood by the public and as a result it would be a “poor policy outcome and not the intention of the Government”.

“If the NDIS and the NIIS resulted in Australians abandoning disability insurance in the expectation that these schemes will provide for their needs, the increased pressure on Government would be an intolerable and unnecessary burden,” the FSC says.

“We believe it is essential that the Government and industry clearly communicate to the community the differences between the NDIS and the NIIS and personal disability insurance.”

The FSC wants the Government to allocate funding to its Lifewise consumer awareness campaign to explain the differences between the schemes and make it clear they will not replace disability insurance.