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General insurers

In the unlikely event that a general insurer fails and cannot meet its financial obligations, such as claim payouts, the Australian Government may activate the Financial Claims Scheme (FCS).

Under the FCS, most policyholders with the affected general insurer are covered for valid claims up to $5,000. This also includes other persons or third parties who may be able to claim under eligible insurance policies with the affected insurer.

For any valid claims of $5,000 and over, the policyholder or claimant must be eligible under certain criteria. To find out which policyholders and other claimants are eligible under the FCS for valid claims of $5,000 and over, see Insurance policyholders protected under the FCS

The FCS only applies to insurance policies issued by a general insurer authorised by APRA. The Scheme does not apply to policies issued by life insurance companies or private health insurance companies.

Some insurance policies, such as where a State or Territory scheme protects the claimant, are not covered under the Financial Claims Scheme. Go to the General insurer FAQs to find out more.

How are claims against general insurers covered under the FCS?

A claim against a failed general insurer can be made under the FCS if:

  • the claim relates to a policy issued by the failed general insurer prior to the FCS being activated by the Australian Government

  • the claim relates to an event that occurred before the FCS is activated (or in some circumstances within 28 days after that time)

  • the claim is made within 12 months after the FCS is activated.

For details of insurance policies not covered under the FCS, and further information on how the FCS works for general insurers, visit the General insurers FAQs page.