Bowen puts home warranty in spotlight again
Consumer Affairs Minister Chris Bowen has called for another review into home builders’ warranty insurance just months after a Senate inquiry recommended only modest changes to the product.
“Home builders’ warranty insurance has been a source of consumer frustration and underperformance, particularly when compared to other classes of insurance,” he told a Ministerial Council on Consumer Affairs meeting in Hobart on Friday.
The ministers – representing the states and territories, as well as the federal and New Zealand governments – were discussing reforms intended to produce a new Australian consumer law by the end of next year.
A recent General Insurance Code of Practice overview by the Financial Ombudsman Service found 45% of home builders’ warranty claims were rejected in the year to June 30 2008, against just 2% across all lines of insurance.
While Mr Bowen acknowledges Senate inquiry recommendations made in November provide a “useful starting point,” he says a further review is intended to identify measures to improve consumer protection in the building industry.
“It is also important to note that some jurisdictions have in recent times made some positive regulatory changes that will benefit consumers,” he said.
“Home builders’ warranty insurance has been a source of consumer frustration and underperformance, particularly when compared to other classes of insurance,” he told a Ministerial Council on Consumer Affairs meeting in Hobart on Friday.
The ministers – representing the states and territories, as well as the federal and New Zealand governments – were discussing reforms intended to produce a new Australian consumer law by the end of next year.
A recent General Insurance Code of Practice overview by the Financial Ombudsman Service found 45% of home builders’ warranty claims were rejected in the year to June 30 2008, against just 2% across all lines of insurance.
While Mr Bowen acknowledges Senate inquiry recommendations made in November provide a “useful starting point,” he says a further review is intended to identify measures to improve consumer protection in the building industry.
“It is also important to note that some jurisdictions have in recent times made some positive regulatory changes that will benefit consumers,” he said.