The trucking industry has obtained a significant exemption from the new supplemental insurance rules that will help the industry and its customers.
The new rules prohibit the sale of supplemental insurance for at least four days after a customer has purchased a product or service. However, additional transport and delivery insurance, including insurance for storage en route, will be exempt.
The Australian Trucking Association (ATA), the Australian Furniture Removers Association (AFRA) and the Australian Livestock and Rural Transporters Association (ALRTA) have welcomed the confirmation of the exemption.
ATA CEO Michael Deegan said the exemption was a victory for common sense, and thanked Treasurer Josh Frydenberg for his consultation and listening to the industry.
âConsumers need to be protected from unscrupulous businesses. At the same time, this must be done in a way that maximizes choice, minimizes red tape and does not prevent an efficient flow of freight or encourage good companies to take unnecessary risks, âsaid M Deegan.
âAfter considering the implications of the limited availability of supplemental insurance products, our members strongly argued for an exemption, and after seeking sound legal advice, we also recommended that the exemption project be extended. to cover incidental storage that may arise during transport. task.
ALRTA executive director Mat Munro said the exemption meets the practical needs of the livestock supply chain.
âOur member carriers often move livestock on short notice and may need to unload and ‘spell’ animals during the trip to manage driver fatigue and animal welfare,â Munro said.
âIn these circumstances, carriers may require additional transport and incidental storage insurance which must be taken out at the same time as the acceptance of the load. Cattle sold at auction are particularly problematic because neither the owner, nor the value, nor the destination is known before the auction.
âThis exemption will guarantee carriers the possibility of obtaining additional insurance quickly and easily. The choice is maintained and the freight will not be delayed. When you move live animals, you just can’t wait four days to acquire a suitable supplemental insurance product, âhe said.
AFRA Executive Director Simone Hill said the regulations were a victory for move clients and AFRA was delighted to see this practical and achievable result.
âMoving can be a difficult experience, a time of upheaval and change. During a move, all of a client’s personal and household effects are shipped from one location to another, âMs. Hill said.
âIf anything should happen to these objects due to a disaster or incident, it is imperative for a person’s financial and mental well-being that they be properly insured.
âThese regulations ensure that clients who move can get proper financial protection and, therefore, peace of mind when they move,â she said.
The Australian government is introducing what is known as the deferred selling model in response to a recommendation from the Royal Commission on Financial Services. The new rules come into effect on October 5, 2021.