JULY 2021
 

'This decision provides certainty'

Government move on RV insurance welcomed by industry's peak body

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THE caravan industry's peak body has welcomed news from the Federal Government that caravans and motorhomes will be exempt from the deferred sales model for add-on insurance products.

"This decision provides certainty for both consumers and businesses that RV owners can access comprehensive insurance before they drive their vehicles off for the first time," the Caravan Industry Association of Australia said.

"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," it said.

"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."

The association has strongly lobbied the government over recent months 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.

It said appropriate cooling off periods remained if consumers changed their mind; and that consumers well-understood 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," it added.

The association thanked Treasurer Josh Frydenberg and Assistant Treasurer Michael Sukkar for their "ongoing support" of Australia's caravan and camping industry.

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