The Australian Prudential Regulation Authority (APRA) has released an updated set of frequently asked questions to provide information about the Financial Claims Scheme for general insurance.

The Federal Government established the Financial Claims Scheme during the 2008 global financial crisis to provide protection for consumers if a bank, credit union, building society or general insurer failed.

In the case of general insurance, it covers claims of up to $5000 from policyholders and claimants, as well as providing protection for higher claim amounts depending on further information collected and eligibility.

The frequently asked questions include information on types of policies covered, eligibility, timeframes, future cover and the treatment of small businesses and non-profit bodies.

They are available here.