The Australian Securities and Investments Commission has extended an arrangement that helps insurers quickly pay consumers small cash sums in emergency situations.

The legislative relief, allowing insurers to advance up to $5000 without having to issue a cash settlement fact sheet, will continue until 2030, rather than the planned February 11 expiry.

And insurers can now use the streamlined process when the offer is made within 42 days of an insurable event, rather than 14 days.

“This change was made following industry feedback that consumers may not be able to make a claim within 14 days following a catastrophic event,” ASIC said.

Emergency payments are made when a consumer has told the insurer or its representative they need immediate financial help. The cash settlement fact sheet must still be provided afterwards.

The obligation to provide a fact sheet was introduced in 2022 to help consumers make informed decisions about whether to accept cash offers on claims.