The Insurance Ombudsman Service (IOS) will soon be able to rule on disputes involving sums up to $280,000 instead of the old $150,000 limit.

In addition, the monetary limits on claims may be increased every three years by the IOS board. The terms of reference changes are due to come into effect in January.

Ombudsman Sam Parrino told Sunrise Exchange News it’s another step in the evolution of the scheme. “$150,000 was woefully inadequate, especially considering property values on the eastern seaboard and the likelihood of earthquakes, bushfires, etc,” he said.

“It’s important we learn from our experiences and expand our service to best suit the needs of the sector.”

Mr Parrino says the changes provide for small businesses with turnover up to $1 million to take insurance disputes to the IOS, compared with the current turnover limit of $400,000. Jurisdiction is no longer restricted to small businesses with five employees or fewer – the number is now unlimited.

He says the uninsured will also benefit, with the $150 fee for uninsured third party property claimants in relation to motor vehicle disputes being abolished.

“Notable among a range of other changes to the terms are those that provide for the future appointment of all independent decision-makers by the board. This emphasises the maturity of the IOS and its position as an independent service of benefit to consumers and participating companies.”

The changes follow many recommendations of the independent review of the IOS in 2005. More than 25,000 resolutions have been made by the service since its inception 14 years ago.