The Insurance Law Service has won a stay of execution after securing funding from the federal Attorney-General’s office.

The Sydney-based operation faced closure earlier this year due to budget cuts from NSW Legal Aid.

“We are absolutely thrilled we can now keep going for another year,” Principal Solicitor Katherine Lane told insuranceNEWS.com.au. “It’s such a relief.”

But the service’s future beyond July next year remains uncertain.

The funding comes after hundreds of people signed a petition calling on Attorney-General George Brandis to save the national service.

Ms Lane says the service – which opened in 2007 – can now keep its three staff, and possibly add more.

The service answers about 4000 insurance queries a year and represent consumers in about 100 cases.

Motor and home cover are key areas of concern, with many cases involving rejected claims from low-income and non-English-speaking people who bought policies online.

Failure to read product disclosure statements is a major problem, Ms Lane says.

“Disclosure in insurance is extremely poor. Nobody reads the product disclosure documents, which are completely inadequate. I found one that was 110 pages. That’s the length of a mini-novel.”