Federal Court dismisses ASIC’s unfair contract term appeal against HCF Life
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The news: The Full Federal Court has dismissed corporate regulator ASIC’s appeal of a previous finding that a contract term regarding a customer declaring their pre-existing conditions was not considered unfair.
This does not affect an earlier Full Federal Court finding that the term was liable to mislead the public.
The context: ASIC first began civil proceedings in relation to the inclusion of the pre-existing condition term across three HCF Life insurance policies, alleging it was an unfair contract term and could mislead the public.
The Federal Court found that the term was liable to mislead the public in October 2024 and later ordered HCF Life to pay a $750,000 fine.
However, the allegation that the pre-existing condition term was unfair was previously dismissed. ASIC has failed to overturn this dismissal on appeal.
Changes to consumer law and the ASIC Act in 2023 outlawed unfair contract terms. ASIC said it brought the HCF Life appeal “to seek to clarify how the unfair contract terms regime applies to contract terms in insurance contracts that may be affected by other statutory protections”.
The corporate regulator is considering the decision.
The source: ASIC media release
