Insurers will soon be required to ask customers who contact them for information about their policy coverage whether they would like to make a claim.

The Australian Securities and Investments Commission (ASIC) wants the requirement to be included in the General Insurance Code of Practice to prevent consumers being talked out of making a claim.

ASIC Commissioner Peter Boxall told last week’s Insurance Council of Australia 2011 Regulatory Update seminar that the issue has come about as a result of ASIC’s review of its regulatory guide covering complaints-handling.

He says concerns have been raised about the way in which insurers handle enquiries from policyholders, who often call their insurer to discuss a potential claim before lodging it.

“The risk is that policyholders with a legitimate claim might be inadvertently dissuaded from lodging a claim,” he said.

As a result of these concerns, ICA has agreed to consult with ASIC and with consumer groups on a proposal to amend the code of practice to address this issue.

“The amendment would require insurers to ask customers verbally if they would like to lodge a formal claim in situations where customers make enquiries about whether they are covered for a particular event,” Dr Boxall said, adding that the issue had been raised again during the Queensland floods.

He says ASIC expects the change will come into effect before the code is next formally reviewed in 2013.