no-one pays the FSL twice

Comment:

Below is an email response from Mich Tanner in relation to the transition period from now to 1/7/2013.  It was suggested that some policy holders would be paying twice in the one year, but as detailed below, it appears that the FSL will only be paid to 1/7/2013.  Those who have policies that go beyond 1/7/2013 should have the FSL rebated or not charged at all.

Fantastic News for all that take out insurance.
Well done LIBERALS!


Mario,

Professor Allan Fels has been appointed the implementation monitor for the transition to the new system.

Prof Fels will ensure the industry tapers down their current FSL takings going into 1 July 2013. To achieve this, Parliament is set to pass a set of consumer protection laws for Prof Fels to ensure policyholders are not ripped off during the transition. Secondly, Prof Fels will be able to name and shame any insurers who are profiteering from the transition.

The market will play a big part in ensuring no-one pays the FSL twice. Policyholders are free to swap insurers next financial year if they feel they are being mistreated. Several insurers have already indicated that they will not charge for the FSL in the final quarter of this financial year in a bid to gain a competitive edge.

I hope the above answers your question.

Regards,
Mitch

Mitch Tanner  |  Research & Media

The Office of Christine Fyffe MP
Deputy Speaker of the Legislative Assembly
Member for Evelyn

T 03 9735 3208
F  03 9735 3697
A  143 Main Street Lilydale VIC 3140
E  mitch.tanner@parliament.vic.gov.au