The Australian Government is introducing a new deferred sales model prohibiting the sale of add-on insurance for at least four days after a customer has purchased the product or service.
Following advocacy by the Australian Trucking Association (ATA), Australian Livestock and Rural Transporters Association (ALRTA) and Australian Furniture Removers Association (AFRA) the exposure draft includes an exemption for add-on transport and delivery insurance products.
The ATA, ALRTA and AFRA welcome the exemption but have called for clarification on incidental storage.
Incidental storage is part of the normal movement of livestock transport, including the need to unload livestock on long journeys, storage close to export vessels and abattoirs, and storage as a result of unforeseen changes to the journey or the need to change vehicle combinations.
In the removals industry, incidental storage is also critical. It is needed in a variety of scenarios, including storage between an initial move and when goods can be delivered to a customer’s new premises, as well as incidental storage at transport depots ahead of long distance moves.
The exemption should be amended to include incidental storage.
The deferred sales model is being introduced in response to a recommendation of the Financial Services Royal Commission.