The Insurance Council of Australia (ICA) has called for clearer, more concise wording in insurance contracts.

“Most of our suggested amendments seek to make the content more consumer-friendly and concise,” the council says in a submission to the Federal Government on disclosure.

It also calls for the changeover period from old insurance contracts to a new prescribed form of wording to be extended.

Treasury should change the Insurance Contracts Amendment Regulation to let insurers continue using existing duty-of-disclosure notices until December 28 next year, the submission says.

ICA argues few insurers use the current prescribed wording, and the extension would give them time to update their section 22 notices next year.

Treasury has conducted public consultation on draft amendments to the Insurance Contracts Regulations 1985.

The changes, which take effect on December 28 next year, are part of the Insurance Contracts Amendment Act 2013.

They are seen to benefit insurers by educating consumers on their duty to make full disclosure before entering insurance contracts.

ICA says the changes clarify the duty of disclosure for consumers and ensure insurers have reliable information to assess and price risk.

It supports the draft regulations and seeks only minor changes. “We encourage the Government to give effect to the draft regulations as soon as practicable,” the submission says.