The range of start dates for amendments to the Insurance Contracts Act means insurers must navigate a compliance maze, Minter Ellison partner Pam Madafiglio warns.

“Over the next few years the insurance industry will need to keep in mind both the old and new versions of some provisions in the legislation,” the law firm’s insurance practice leader said.

“They will need to be very vigilant.”

Minter Ellison has had to issue its new Insurance Contracts Act Handbook with old and new versions of some amendments, to cover transition periods.

Amendments allowing insurers to send communications electronically could backfire, Ms Madafiglio told insuranceNEWS.com.au.

Insureds are more likely to be caught in innocent non-disclosure because they have not read electronic forms carefully. Courts have had to consider this in cases concerning people with limited education.

Ms Madafiglio says insurers are already raising concerns about the key facts statements introduced in the amendments.

The statements are a response to the 2011 flood inquiries, which found consumers do not read product disclosure statements.

But she says the one-page explanation of key policy features has swung to the other extreme. “If you highlight six things it is the seventh that is relevant to a particular consumer when they have a claim.”