Information in this section provides an overview of the financial hardship provisions in the Code. It is recommended that anyone seeking financial hardship assistance reviews the Financial Hardship section in the Code (Section 8) for full details.
“Financial Hardship” means you are having difficulty meeting your financial obligations to an insurer.
For example, you may owe money to an insurer if you have made a claim and need to pay an excess, or if you caused a car accident while uninsured and the insurer of the other car is seeking payment for the damage from you.
You could be experiencing Financial Hardship because you have lost your job, or you’re suffering from an illness or disability, or you have received some unexpectedly large bills.
If you owe money to a general insurer and you are experiencing Financial Hardship, you can ask an insurer to assess whether you are entitled to assistance.
PLEASE NOTE: The Financial Hardship provisions in the Code of Practice do not apply to unpaid general insurance premiums.
If an insurer determines that you are entitled to financial hardship assistance for a debt owed, it will work with you on a payment arrangement, such as extending the due date for payment, paying the amount in instalments, or paying a reduced lump sum.
Free, confidential, independent financial advice is also available to you, via Financial Counselling Australia (https://www.financialcounsellingaustralia.org.au) and through the national financial counselling hotline 1800 007 007.
The following information will be of use to an insurer in assessing your request for Financial Hardship assistance:
[These details are required for your application]
A. Income you receive per fortnight
If any of the income you receive is paid monthly, please calculate what it is per fortnight and list below
Total income per fortnight (A)
B. Expenses you pay per fortnight
If you make any monthly payments, please calculate what these payments are per fortnight and list below
Total expenses per fortnight (B)
TOTAL INCOME – TOTAL EXPENSES PER FORTNIGHT (A – B)
Please provide a description of your financial circumstances and your situation with the insurer, and why you are requesting assistance for Financial Hardship.
The following documents may assist your application, if they are relevant to your application and you choose to attach them:
PLEASE NOTE: If any of the documents you provide to the insurer contain your Tax File Number (TFN), please blank this out.
What assistance would you like the insurer to consider?
If you are unable to reach an agreement with an insurer about Financial Hardship assistance, or if you are unhappy with any aspect of the application process, you may make a complaint.
Information on making a complaint can be found at https://www.afca.org.au/make-a-complaint/financial-hardship-complaints.