The Life Insurance Code of Practice has been strengthened with the last-minute inclusion of minimum standard medical definitions for cancer, heart attack and stroke, for use in trauma and critical illness policies.

The code took effect on Saturday after being unveiled last year following extensive consultation.

Financial Services Council (FSC) CEO Sally Loane says the council has “worked closely with our life insurance members and medical professionals to ensure that a new foundation of minimum standard medical definitions is implemented for new policies from day one of the code regime”.

“In doing so we have laid the foundations for the ongoing strengthening of the code.”

The medical definitions apply to the first $2 million of trauma/critical illness cover for schemes issued from July 1, with definitions to remain under review to ensure they keep pace with medical science advancements.

The FSC says the independent Life Code Compliance Committee will be chaired by David Weisbrot, previously the longest-serving president of the Australian Law Reform Commission.

Other committee members are Actuaries Institute past president David Goodsall and Financial Rights Legal Centre Principal Solicitor Alexandra Kelly.

Ms Loane says the FSC is “committed to considering” registration of the code with the Australian Securities and Investments Commission as part of the code’s second iteration.