The Insurance Council of Australia (ICA) wants people to make more effort to read their policies. It has urged people to try harder, and even use an insurance broker, to understand their cover better.

The ICA message is very clear: if you want a concise policy that will pay claims, make sure you clearly read and understand it before you sign.

Executive Director Alan Mason says underinsurance research shows that people don’t take the time to understand their policies and ensure they’re fully covered before they pay their premiums.

He said various legal requirements ensure policies “still involve some degree of complexity”. He said people should also consider seeking advice from an insurance broker, irrespective of the amount of cover they need.