The industry’s move to have in place measures to support customers who are facing domestic violence through new provisions to its revamped code of practice is a step in the right direction, according to consumer advocates.

But the work is far from over, the advocates told insuranceNEWS.com.au, pointing out future revisions of the measures will need to go deeper and further.

“The first response is to make sure that the industry actually accepts responsibility for ensuring that a woman is safe, and the new section of the code that is being introduced now is aimed at just that,” leading consumer lawyer Denis Nelthorpe said.

“And I think and I know from discussions with the industry that they have taken that seriously and I think they are getting it right.

“I think the provisions in the code deal with the issue of family violence in a sensible and sensitive way.”

The family violence support measures took effect this month, with signatories to the new General Insurance Code of Practice required to have a publicly available policy on how they will support customers affected by family violence.

The new code’s overall implementation date has been put back six months to July next year because of coronavirus disruption, but there was no change to the start date for the family violence provision. Many code enhancements aimed at helping vulnerable customers were also brought forward to July 1.

Mr Nelthorpe, who was a leading advocate for the Victorian Government’s royal commission into family violence, says the next set of reforms should ideally focus on the way wordings are made in policies and insurance contracts.

But he warns the industry may find it hard as it will require possible reforms to the legal framework.

“The consumer movement believes there is potentially a need for law reform. There is a need for significant changes to policy documents but there may also need to be fundamental changes to underwriting processes.”

The Financial Rights Legal Centre calls the family violence support provision an “important first step” taken by the industry to address some of the issues facing customer who are victims.

“This is a complex and difficult area, and having these guidelines in place will hopefully both improve awareness among the sector of the issues faced by those experiencing domestic abuse as well as bring positive change to the way insurers engage with their customers,” Policy and Advocacy Officer Drew MacRae said.

“We commend the [insurance] sector for bringing the implementation of this guideline forward during a time where there has been a spike in domestic and family violence.”

He says most insurance issues facing customers who are victims of domestic violence involve home and motor claims. For example, a partner who has left the family home may return and damage the property, but the claim can be denied because a policy has an exclusion around people who are known to the insured.

Consumer Action Law Centre Policy Officer Tom Abourizk says the provision means insurers are now at least required to take steps to better support people experiencing family violence and financial hardship.

But he called for more details from insurers.

“Many of the policies we have seen offer only limited detail on how insurers will handle this complex issue,” he said.

“We sincerely hope that these family violence policies indicate that insurers have also taken steps to ensure their staff can provide appropriate support to those experience family violence, and are not just ticking a box to comply with the new Code of Practice provisions.

“It is crucial that insurers have appropriately trained customer support staff to identify potential indicators of family violence, and help support those in danger or at risk of family violence through the implementation of processes that prioritise safety and recovery from the wide-ranging consequences.”