Short of a ban, we strongly support ASIC’s intention to introduce a deferred sales model (DSM) for the sale of financial products at the point of sale in caryards and the restrictions on warranties. We see this intervention as the bare minimum needed to curb problematic junk insurance sales. We strongly support ASIC extending these protections to dealer-issued and direct warranties. We accordingly encourage ASIC to make the Draft Instrument as soon as possible. The economic fallout from COVID-19 means people cannot afford this ongoing rip-off. The incentives for dealers to prop up revenue by flogging junk products remain strong. The evidence is well established that the sale of junk insurance in caryards is continuing to cause significant detriment to consumers.
