New Insurance Code Step Puts Claims Service Back in Focus

The key shift is enforceability. The revised Code is intended to make important insurer obligations contractually enforceable for the first time, once approved and implemented. That could give eligible policyholders stronger pathways to challenge poor service through existing dispute channels or, in some circumstances, through contractual rights. However, it is important not to overstate the immediate effect: ASIC still needs to consider the Code, and a transition period is expected before it applies to new and renewed policies.

This is a follow-up to the earlier consultation on the draft General Insurance Code of Practice, but the practical message for fitness businesses remains consistent. Insurance value is tested when a claim is made, not only when a premium is paid. A personal trainer working in parks, a yoga instructor hiring community venues, or a studio owner with leased premises may each face different policy terms, excesses, exclusions and evidence requirements.

Several proposed Code themes are especially relevant to small operators:

• clearer communication about claim progress and reasons for delay;
• higher expectations around claims handling, expert reports and transparency;
• stronger support where customers are experiencing vulnerability or financial hardship;
• more accountability where insurer promises are incorporated into applicable contracts.

For many fitness operators, the biggest practical limitation is scope. Not every business policy, insurer, product or circumstance will necessarily be covered in the same way. Public liability, professional indemnity, business interruption, equipment and property sections may also involve different obligations and timeframes. Where a broker is involved, operators should still keep their own records and understand who is responsible for passing on claim updates and documents.

The reform also reinforces a basic claims discipline: document incidents early. That means recording the date, location, client activity, supervision provided, equipment condition, first aid response, witness details and follow-up communication. For studios and gyms, maintenance logs, cleaning records, induction procedures and staff training notes can become important evidence if a claim is disputed.

The strengthened Code will not remove the need to read policy wording carefully or to disclose business activities accurately. But it does signal a more demanding service environment for insurers. Fitness professionals should use the period before implementation to review their claims processes, confirm contact pathways and ensure their records can support a clear, timely claim if something goes wrong.