The Insurance Council of Australia (ICA) has backed plans to create the Australian Small Business and Family Enterprise Ombudsman, so long as the draft bill to determine its powers does not clash with its own code of conduct.

In a submission to Treasury, ICA says the legislation must avoid overlap with or duplication of current services, especially in relation to industry dispute resolution schemes.

ICA members are signatories to two codes of conduct: the General Insurance Code of Practice, and the Motor Vehicle Insurance and Repair Industry Code of Conduct.

“Our support for the establishment of the ombudsman is based on the premise that these codes and their dispute resolution processes will continue to operate unfettered,” CEO Rob Whelan says in the submission.

ICA wants the draft bill to make it clear that when an existing dispute resolution scheme applies to a small business complaint, that scheme takes priority.

“We seek clarification that the bill is not intended to exclude, limit or provide a parallel process to the effective dispute resolution procedures provided by way of industry codes of conduct.”

Duplication of dispute resolution services could result in small businesses shopping around for the most favourable outcome, ICA says. “There will likely be multiple handling of complaints, with additional time and expense and confusion in situations where our members wish to have a speedy resolution.”