We welcome the recent announcement by the Federal government to exempt motorhomes and caravans from the deferred sales model for add on insurance products. This decision provides certainty for both consumers and businesses that recreational vehicle owners can access comprehensive insurance before they drive their vehicles off for the first time.
The Government’s ongoing review into financial products as part of the Hayne Royal Commission is an important activity to ensure relevant mechanisms are in place to reduce the hawking of insurance products. However, without this announced exemption, there was a real risk that consumers could drive or tow a recreational vehicle away without having access to comprehensive insurance.
Over recent months, the National Association strongly lobbied government to demonstrate that consumers have the opportunity to seek insurance products from a range of providers throughout the purchasing process and before collecting their vehicle; that appropriate cooling off periods remain if consumers change their mind; and that consumers well-understand the motor vehicle insurance product. The government’s decision is a commonsense outcome for the industry and aligns us with the broader motor vehicle sector which had already received an exemption from the model.
We thank the Treasurer the Hon Josh Frydenberg and Assistant Treasurer, the Hon Michael Sukkar, for their ongoing support of Australia’s caravan and camping industry.
Full government release can be read here.