The Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) has increased its financial threshold for consumer complaints covering insurance claims and other financial services/products.
Its limits were set at $200,000 or $1,500 a week – anything above this would be beyond its remit to investigate. However, from 1 September 2023 these will be raised to $350,000 and $2,625 (plus GST) respectively.
Karen Stevens, Insurance & Financial Services Ombudsman, says the changes mean more consumers can have their complaints investigated by the IFSO Scheme’s free service, rather than having to go through the courts.
“Previously, anyone with a claim over the limit of $200,000 would have had to pay for legal representation to take their case to court,” says Stevens. “The changes bring us into line with some other dispute resolution schemes in the financial sector, and will mean a number of extra cases are now eligible for us to look at.”
Other changes include clarifying the IFSO Scheme’s decision-making process and increasing the amount that can be awarded for special inconvenience to $5,000.
The IFSO Scheme consulted on proposed changes during two rounds of feedback with Participants and stakeholders, in late 2022 and early 2023.
IFSO’s terms of reference and constitution documents can be found here:
Terms of Reference effective 1 September 2023
Constitution effective 1 September 2023