{"id":"F2021L01042","name":"ASIC (Information under the Deferred Sales Model for Add-On Insurance) Instrument 2021/632","slug":"asic-information-under-the-deferred-sales-model-for-add-on-insurance-instrument-2021-632","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":440950,"registerId":"F2021L01042-fast-fetch-1775956391956","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC (Information under the Deferred Sales Model for Add-On Insurance) Instrument 2021/632","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\ntitle: ASIC Corporations (Prescribed Information under the Deferred Sales Model)\n---\n\n![Commonwealth Coat of Arms and ASIC logo](image.001.png)\n\nASIC (Information under the Deferred Sales Model for Add-On Insurance) Instrument 2021/632\n\nI, Anthony Graham, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\n \n\nDate 26 July 2021   \n\n \n\n \n\nAnthony Graham\n\n \n\n\nContents\n\n[Part 1—Preliminary](#_Toc78187423)\n\n[1 Name of legislative instrument](#_Toc78187424)\n\n[2 Commencement](#_Toc78187425)\n\n[3 Authority](#_Toc78187426)\n\n[4 Definitions](#_Toc78187427)\n\n[Part 2—Information under the deferred sales model for add-on insurance](#_Toc78187428)\n\n[5 Information that must be given to the customer](#_Toc78187429)\n\n[6 How the information must be given](#_Toc78187430)\n\n[Schedule 1—Prescribed information by electronic communication](#_Toc78187431)\n\n[Schedule 2—Prescribed information in hard copy](#_Toc78187432)\n\n \n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC (Information under the Deferred Sales Model for Add-On Insurance) Instrument 2021/632.\n\n2 Commencement\n\nThis instrument commences on the later of:\n\n(a) the day after it is registered on the Federal Register of Legislation; and\n\n(b) 5 October 2021.\n\nNote: The register may be accessed at [www.legislation.gov.au](http://www.legislation.gov.au).\n\n3 Authority\n\nThis instrument is made under subsection 12DP(4) of the Australian Securities and Investments Commission Act 2001.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the Australian Securities and Investments Commission Act 2001.\n\nadd‑on insurance deferral period has the same meaning as in subsection 12DP(1) of the Act.\n\ncustomer has the same meaning as in subsection 12DP(1) of the Act.\n\nelectronic communication has the meaning given in paragraph (a) of the definition of electronic communication in section 5 of the Electronic Transactions Act 1999.\n\nopt-out mechanism means the way or ways by which a customer can inform any person referred to in section 12DS of the Act that they do not wish to receive offers of add-on insurance products, or requests or invitations for the customer to ask or apply for add-on insurance products, in relation to a principal product or service.\n\nprescribed information has the meaning given in subsection 5(1).\n\nprincipal product or service has the same meaning as in subsection 12DP(1) of the Act.\n\nWCAG 2.0 means the Web Content Accessibility Guidelines published on 11 December 2008 developed by the Accessibility Guidelines Working Group which is part of the World Wide Web Consortium Web Accessiblity Initiative.\n\nPart 2—Information under the deferred sales model for add-on insurance\n\n5 Information that must be given to the customer\n\nPrescribed information\n\n(1) For the purposes of paragraph 12DP(1) of the Act, the information (prescribed information) set out in:\n\n(a) Schedule 1 is determined in relation to giving a customer information by electronic communication in relation to a principal product or service and an add-on insurance product; and\n\n(b) Schedule 2 is determined in relation to giving a customer information in hard copy in relation to a principal product or service and an add-on insurance product.\n\nNote:  In order for there to be an add-on insurance deferral period in relation to an add-on insurance product, the prescribed information will need to be given in relation to that add-on insurance product.\n\nElectronic provision of the prescribed information\n\n(2)   Where the prescribed information is given by electronic communication:\n\n(a)  the information must:\n\n(i) be in the sequence set out in Schedule 1; and\n\n(ii) be displayed in the body of the electronic communication, and not in an attachment or via a link; and\n\n(iii) be displayed in a format that complies with Guideline 1.4 of the WCAG 2.0 at Level AA; and\n\n(iv) if sent using an electronic communication that has a subject line, have the subject line: ‘You can say no to add-on insurance’; and\n\n(v) not contain any words or images other than those determined in this instrument; and\n\n(b)   the manner of electronic communication must allow the customer to have convenient and ongoing access to the prescribed information throughout the period of 6 weeks beginning on the first day of the add‑on insurance deferral period.\n\nHard copy provision of the prescribed information\n\n(3)  Where the prescribed information is given in hard copy, the information must:\n\n(a) be in the form set out in Schedule 2; and\n\n(b) be provided on an A4 size page with a white background; and\n\n(c) not contain any words or images other than those determined in this instrument.\n\n6 How the information must be given\n\n(1)  The prescribed information must be given to the customer:\n\n(a) if the person giving the information is satisfied that the customer can receive the information by electronic communication used by the person for the purpose of giving the information to customers—by electronic communication; or\n\n(b) if, having taken reasonable steps, the person giving the information is not so satisfied—in hard copy.\n\n(2)  In addition to any requirement to give information by electronic communication under paragraph (1)(a), if the customer acquires, or commits to acquire, the principal product or service through an in-person interaction, the customer must be given:\n\n(a) the option to receive the prescribed information in hard copy during the in-person interaction; and\n\n(b) the prescribed information in hard copy during the in-person interaction if the customer so elects.\n\n(3)  Subsection (2) does not apply if the add-on insurance product, as part of its terms and conditions, is sold on the basis that all disclosures and communications relating to the product will only be given by electronic communication.\n\n(4) The prescribed information must be given to the customer after:\n\n(a) the time the customer enters into the commitment to acquire the principal product or service; or\n\n(b) if the customer acquires the principal product or service without previously entering into a commitment to do so—the time the customer acquires the principal product or service.\n\nSchedule 1—Prescribed information by electronic communication\n\n \n\n \n\nTo [insert name of customer]\n\n \n\nYou can say no to being sold this insurance. It is not compulsory.\n\n \n\nSalespeople must wait 4 days before selling you insurance as an ‘extra’ to your main purchase.\n\n \n\nYou can say ‘no’ to being contacted about [insert name of add-on insurance product]\n\nsold by [insert name of add-on insurance product provider] by [insert details of opt-out mechanism] or via either of the contact details below. \n\n \n\nYou can opt-out of being contacted about any insurance as an ‘extra’ to your main purchase by contacting [insert name of principal product or service provider] via the details below.\n\n \n\nIf you are unsure, consider your situation and ask yourself:\n\n \n\nDo I need and understand this insurance?\n\nConsider what the policy covers and what it excludes. You may already have other insurance or arrangements that will cover any potential loss or damage.\n\n \n\nCould I get a better deal somewhere else?\n\nConsider if another insurance product or company can better meet your needs. You may be able to shop around for a better deal.\n\n \n\nFor more information, visit <https://Moneysmart.gov.au/add-on-insurance>\n\n \n\n \n\n| [insert name of principal product or service provider] |\n| --- |\n| Call: [insert phone number] |\n| Write to: [insert address and/or email address] |\n\n\n \n\n| [insert name of add-on insurance provider] |\n| --- |\n| Call: [insert phone number] |\n| Write to: [insert address and/or email address] |\n\n\n \n\nThis Customer Information is provided as a requirement of the Australian Securities and Investments Commission Act 2001 to reduce the number of poor-quality insurance products being sold in Australia.\n\n\nSchedule 2—Prescribed information in hard copy\n\n \n\n To [insert name of customer]\n\n \n\nYou can say no to being sold this insurance\n\nIt is not compulsory\n\n \n\n \n\nSalespeople must wait 4 days before selling you insurance as an ‘extra’ to your main purchase.\n\n \n\n \n\nYou can say ‘no’ to being contacted about [insert name of add-on insurance product] sold by [insert name of add-on insurance provider] by:\n\n \n\n| 1.   Telling the salesperson | or | 2.   Ticking here ☐ and returning this form | or | 3.   Using either of the contact details below |\n| --- | --- | --- | --- | --- |\n\n\n \n\nYou can opt-out of being contacted about any insurance as an ‘extra’ to your main purchase by contacting [insert name of principal product or service provider] via the details below.\n\n \n\n \n\n \n\nIf you are unsure, consider your situation and ask yourself:\n\n \n\n- Do I need and understand this insurance?\n\n\nConsider what the policy covers and what it excludes. You may already have other insurance or arrangements that will cover any potential loss or damage.\n\n \n\n- Could I get a better deal somewhere else?\n\n\nConsider if another insurance product or company can better meet your needs. You may be able to shop around for a better deal.\n\n \n\n \n\nFor more information, visit <https://Moneysmart.gov.au/add-on-insurance>\n\n \n\n \n\n \n\n- [insert name of principal product or service provider] [insert name of add-on insurance provider]\n- Call: [insert phone number] Call: [insert phone number]\n- Write to: [insert address and/or email address] Write to: [insert address and/or email address]\n\n\n \n\n \n\nThis Customer Information is provided as a requirement of the Australian Securities and Investments Commission Act 2001 to reduce the number of poor-quality insurance products being sold in Australia.\n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"This instrument implements subsection 12DP(1) by prescribing the content, format and delivery mechanics of disclosures for the deferred sales model. It does not expand or narrow the classes of customers or products captured by that statutory model; it adds procedural, accessibility and formatting requirements for how prescribed information must be given (see s5 and s6) but does not alter substantive scope."},"complexity_factors":["Prescribed templates and exact wording in Schedules 1 and 2 constrain drafting choices and require strict adherence (s5(1); s5(2)(a)(v); s5(3)(c)).","Electronic presentation rules: information must be displayed in the body, comply with WCAG 2.0 Level AA, use a specified subject line, and cannot be provided by attachment or link (s5(2)(a)(ii)-(iv), (v)).","Choice of delivery method depends on the provider’s satisfaction the customer can receive electronic communication and a 'reasonable steps' fallback to hard copy (s6(1)).","In-person sales trigger an option and potential obligation to provide hard copy during the interaction, with a contract-based exception for electronic-only products (s6(2)-(3)).","Access and timing obligations require the disclosure to be given after commitment or acquisition and remain conveniently accessible for six weeks (s6(4); s5(2)(b)).","Opt-out mechanism content and provider/principal contact details must be inserted into the prescribed text, affecting operational contact-handling (definitions; Schedules).","Hard-copy formatting rules (A4, white background) and the prohibition on adding words/images create narrow compliance tolerances (s5(3)(a)-(c)).","Instrument is a delegated prescription under s12DP(4) of the ASIC Act, meaning it implements procedural requirements rather than creating new substantive categories of regulated products (s3)."],"plain_english_summary":"Prescribes the exact wording and formats sellers must give customers under the deferred‑sales model for add‑on insurance, including electronic (Schedule 1) and hard‑copy (Schedule 2) templates, a 4‑day wait before sales, six‑week access to the disclosure, and opt‑out mechanisms. It fixes presentation requirements (WCAG 2.0 AA, subject line, no attachments), requires the disclosure after the customer’s commitment or acquisition, and places compliance obligations on principal product sellers and add‑on insurers (made under s12DP(4) of the Act)."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The instrument remains tightly focused on its original purpose: prescribing the exact content and format of disclosure notices required under the deferred sales model for add-on insurance provisions in the ASIC Act. It does not expand beyond this specific administrative function."},"complexity_factors":["Short instrument with only 6 operative sections plus 2 schedules","Minimal cross-referencing — primarily references back to the parent ASIC Act for defined terms (add-on insurance deferral period, customer, principal product or service)","Straightforward conditional logic in section 6 (electronic vs hard copy determination)","Two simple exceptions: one for in-person interactions requiring hard copy option (section 6(2)), and one carve-out for products with mandatory electronic-only terms (section 6(3))","Prescriptive but not conceptually difficult — the schedules contain template text with clear insertion points marked [insert...]","Only 7 defined terms in section 4, most imported from primary legislation","No nested exceptions or complex temporal calculations beyond the 6-week access requirement and the 4-day deferral period (which is defined externally)"],"plain_english_summary":"This law forces businesses selling add-on insurance to use exact, legally prescribed wording and formats (electronic and paper), give customers a clear opt‑out notice, and wait four days before offering the add‑on. It affects insurers, retailers and service providers who bundle extras with sales, and the consumers who buy them. The measures aim to curb high‑pressure, poor‑value add‑on sales by giving buyers time and clear information to decide."}},"importantCases":[],"_links":{"self":"/api/acts/asic-information-under-the-deferred-sales-model-for-add-on-insurance-instrument-2021-632","history":"/api/acts/asic-information-under-the-deferred-sales-model-for-add-on-insurance-instrument-2021-632/history","analysis":"/api/acts/asic-information-under-the-deferred-sales-model-for-add-on-insurance-instrument-2021-632/analysis","conflicts":"/api/acts/asic-information-under-the-deferred-sales-model-for-add-on-insurance-instrument-2021-632/conflicts","importantCases":"/api/acts/asic-information-under-the-deferred-sales-model-for-add-on-insurance-instrument-2021-632/important-cases","documents":"/api/acts/asic-information-under-the-deferred-sales-model-for-add-on-insurance-instrument-2021-632/documents"}}