The Insurance Council of Australia (ICA) has raised concerns about the Australian Privacy Principles draft guidelines, which will be central to new privacy laws due next March.

It has told the Australian Information Commissioner the concepts involved are “not dissimilar” to principles followed by general insurers for years.

But it says a number of areas must be revised or clarified, and it takes issue with cost at times being discounted as a relevant consideration in what is reasonable or practicable.

“We submit that cost should be a relevant factor, among, of course, others, and the guidelines should appropriately reflect this.

“Costs can have a direct effect, not only on the entity but on consumers, because they may not be able to be absorbed by the business.”

ICA also expresses concern at the suggestion an individual can withdraw consent in relation to personal information at any time.

“Our members require certainty that legitimate uses flowing from the original provision of consent for collection, use or disclosure can be maintained.

“Insurers otherwise may be placed in an untenable position where they have a continuing contractual obligation under a policy but are deprived of the use of necessary information obtained with the consent of the insured.

“Withdrawal of consent may lead to the insurer needing to cancel the policy.”