The Federal Government has extended a deadline for submissions on controversial proposals to make insurance subject to unfair contract terms legislation.

Its consultation now has a closing date of August 24, after requests were received for additional time. Submissions on the Treasury paper were initially due by July 27.

The Insurance Council of Australia says the proposed model could have profound implications for insurance contracts and lead to sharp price rises.

“This particular proposal would be detrimental and would lead to perverse outcomes that would actually harm the ability of Australian households and small business to buy insurance,” spokesman Campbell Fuller told insuranceNEWS.com.au.

The paper, which includes 32 questions for consultation, follows recommendations from a Senate inquiry into general insurance last year.

See ANALYSIS.