IDR is the mandatory process insurers must have for handling customer complaints internally, requiring acknowledgment within 24 hours and resolution within 30 days for most complaints.
Internal Dispute Resolution (IDR) is the first formal step in resolving a dispute with your insurer. It is required under ASIC's RG 271 and applies to all AFSL holders, including insurers and brokers.
Default notices (such as delayed premium payment) may have shorter timeframes.
If you are dissatisfied with the outcome, or if the insurer does not respond within the required timeframes, you can escalate to AFCA. IDR responses are not legally binding, so legal action remains an option.
Insurers cannot penalise you for making a complaint.
A claim was denied for alleged non-disclosure; the policyholder lodged an IDR complaint, and after review, the insurer's IDR team found the original decision was incorrect and approved the claim
An income protection claim took 3 months to assess; the IDR complaint resulted in the insurer appointing a dedicated case manager, expediting the assessment, and paying compensation for the delay
After an unsatisfactory IDR response where the insurer maintained their claim denial, the customer escalated to AFCA who overturned the insurer's decision
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