(Cth) Require a Conduct of Others Clause in Insurance Contracts
Author: Serena O’Reilly, Bianca-Rose Sun, Jemail Asani, Charlie Byrne, Megan Yap & Isabella Jiang | Publish date: 21/9/2026
CW: Domestic and financial abuse
P: In Australia, victim-survivors can be denied insurance due to the conduct of their perpetrator in a joint insurance policy.
S: The Minister for Financial Services should amend Part V Division 2 of the Insurance Contracts Act 1984 (Cth) to require a Conduct of Others clause in relation to those experiencing domestic violence in all retail insurance policies, including joint insurance policies.
E: Financial Rights Legal Centre (2024): ‘Amend the Insurance Contracts Act 1984 to allow insurers to deem a joint insurance policy to be a composite policy [Conduct of Others clause] … in situations where a victim-survivor’s claim would ordinarily be denied due to the conduct of their perpetrator’.
Problem Identification:
Part V, Division 2 of the Insurance Contracts Act 1984 (Cth) (the Act) outlines the ‘general provisions relating to insurance contracts’. However, the Act does not require joint insurance policies to include a Conduct of Others clause.
According to the Financial Rights Legal Centre (FRLC), this means ‘perpetrators [of domestic violence] can … damage homes leaving innocent victims unable to claim due to exclusions under the policy’. Further, the Economic Abuse Reference Group highlighted that ‘an insurance claim may be rejected on the basis that the victim invited the perpetrator into the house even if the perpetrator is not a joint-owner or co-insured.’
Context:
According to Wotton + Kearney (W+K), an Asia-Pacific insurance and risk legal business, a Conduct of Others clause refers to an insurance policy provision that allows insurers to assess a claim based on the claimant's conduct rather than the intentional actions of a co-insured person. Insurance companies Suncorp and Allianz have already introduced Conduct of Others clauses in relation to domestic and family violence.
According to Allianz, domestic and family violence refers to ‘behaviour that is violent or threatening or controls another family member or causes that family member to be fearful.’ According to the ABS, ‘16% (1.6 million) [women] … experienced … economic abuse’ from 2021 to 2023.
Arguments:
The Guardian reported that domestic violence perpetrators ‘[can] “weapon[ise]” [joint] insurance policies to exert financial control over their partners’. Catherine Fitzpatrick, an Adjunct Associate Professor at UNSW, argued that common insurance exclusions relating to intentional property damage mean that ‘victim-survivors can in effect be penalised for the actions of the perpetrator’ in a joint insurance policy. The 2024 Parliamentary Joint Committee on Corporations and Financial Services highlighted a case study in which Vivi (not real name) took out a home contents insurance claim due to damage after ‘her partner perpetrated domestic violence …’ Despite lengthy assessments by the insurer, the report found that the ‘insurer … offer[ed] nothing as [it was] not covered under policy.’ W+K outlined how this can leave victim-survivors ‘without insurance when their property is intentionally damaged by a perpetrator of domestic violence’.
Fitzpatrick highlighted how the ‘lack of standardised practices across the [insurance] industry’ results in some victim-survivors receiving support while ‘others continue to struggle with … compounding financial hardship.’ An Insurance Business article (2024) outlined that ‘out of 90 insurance companies operating in Australia, only two … have [a Conduct of Others] clause in their policies.’ W+K highlighted a case study in which Sally, the sole insured on her home, allowed her son, Dylan, to live on the property, who later set fire to the house. Sally’s claim was denied and not reimbursed as Dylan was an ‘invitee/insured under the property policy because he lived on the property with Sally’s permission.’ Fitzpatrick stressed that ‘it shouldn’t be a lottery for a customer to receive this help based on who they are insured with’.
Advice/Solution Identification:
FLRC and W+K have called to introduce a Conduct of Others clause ‘as a standard term in retail insurance policies’, including joint insurance policies. W+K and the Centre for Women’s Economic Safety have stated that this could ‘significantly enhance the support available to those affected by financial abuse.’
Precedent:
There is international precedent for including a Conduct of Others clause in insurance. In Ontario, legislation was amended to ‘permit recovery by innocent persons when another person insured under the same policy commits an intentional or criminal act.’
Public Support of the Solution:
(This list reflects publicly stated positions and should not necessarily be taken as endorsement of this specific brief.)
Broad Support:
Centre for Women’s Economic Safety/Catherine Fitzpatrick (Adjunct Associate Professor, UNSW School of Social Sciences) - They have called for all general insurers to introduce a Conduct of Others clause. However, they have not explicitly called for the requirement of a Conduct of Others clause in the Insurance Contracts Act 1984 (Cth).
Allianz - They have introduced a Conduct of Others clause within their ‘Family Violence Policy’. However, they have not explicitly called for the requirement of a Conduct of Others clause in the Insurance Contracts Act 1984 (Cth).
Suncorp - They have established a Conduct of Others clause in their consumer insurance policies. However, they have not explicitly called for the requirement of a Conduct of Others clause in the Insurance Contracts Act 1984 (Cth).
News Coverage:
Insurance Business - “Domestic violence survivor calls for change to insurance contracts”. The article revealed the challenges victim-survivors face in having their insurance claims denied and outlined the Conduct of Others clause as a solution to this. By: Daniel Wood | 23 May 2024 - Read the article here.
Insurance Business - “Violence against women is increasing - what can insurers do?” The article outlined how insurance policies currently protect women from domestic and family violence. By: Daniel Wood | 2 May 2024 - Read the article here.
The Guardian - “Domestic violence perpetrators ‘weaponising’ insurance policies in Australia to exert control, report finds”. This article reported how victim-survivors of domestic violence are impacted by the misuse of insurance by their perpetrators and are denied payouts because of it. By: Kate Lyons | 6 March 2024 - Read the article here.
Where to go to learn more:
(2024) Submission to the Inquiry into Financial Services Regulatory Framework in Relation to Financial Abuse in Australia (Inquiry) | Wotton + Kearney - This submission outlined how damage to property by a co-insured perpetrator of domestic abuse can leave victim-survivors without coverage. This submission recommended that a Conduct of Others clause be introduced in the Insurance Contracts Act 1984 (Cth). Read the submission here.
(2024) A fairer approach to general insurance | Financial Rights Legal Centre - This brief provides a summary of the goals to improve general insurance and the experiences of insurers when making claims. It has recommended the introduction of a Conduct of Others clause to the Insurance Contracts Act 1984 (Cth). Read the brief here.
(2024) Insurance is the latest weapon financial abusers use against their partners. Here’s how we fix it | Catherine Fitzpatrick - This article highlighted the use of insurance as a weapon perpetrated by domestic abusers against victim-survivors and called for the inclusion of a Conduct of Others clause as a standard part of every insurance contract. Read the article here.
(2024) Financial abuse: an insidious form of domestic violence | Parliamentary Joint Committee on Corporations and Financial Services - This report outlined how perpetrators of domestic violence can damage insured property to prevent victim-survivors from making insurance claims due to intentional damage clauses, and recommended establishing a Conduct of Others clause. Read the report here.
(2024) Designed to Disrupt: Reimagining general insurance products to improve financial safety | Centre for Women’s Economic Safety/Catherine Fitzpatrick - This paper argued that insurance policy exclusions on intentional damage of property by perpetrators of domestic violence have adverse effects on victim-survivors. They recommended that a Conduct of Others clause be adopted to aid victim-survivors in insurance protection. Read the discussion paper here.
(2021) Australians unaware that perpetrators of family and domestic violence can use insurance policies to cause further harm | Allianz - This article outlined how insurance is maliciously used by perpetrators against victim-survivors in domestic violence cases and recognises the problem it poses to both families and insurance organisations. Read the article here.
(2017) Insurance and Family Violence | Economic Abuse Reference Group - This report highlighted the adverse impact that insurance laws and practices have on families experiencing domestic and family violence. Read the report here.
Insurance Contracts Act 1984 (Cth) - Read the full Act here.
Human Perspective:
CW: Domestic violence and financial insecurity
Jessica had started formal divorce proceedings against her husband, Michael, after suffering many years of domestic violence. Michael and Jessica shared a joint mortgage and insurance policy on their home, with Jessica being the primary insurance holder. Michael and Jessica lived apart for four months in the finalisation of their divorce, with Jessica taking over payment of the mortgage and Michael moving out of the shared property. While Jessica was at work, Michael had entered the property with a spare key and started destroying the home and its contents. When Jessica returned, she discovered that the house and its contents had been destroyed, with her receiving multiple threatening texts from Michael, in which he admitted that he had entered the home and destroyed its contents. Devastated, she called the insurance company to lodge a home and contents claim. The insurance company made several visits to the home, and after a lengthy assessment process, the claim was denied. The insurance company argued that since she and Michael were on a joint insurance policy at the time of the damage, the act fell under malicious/intentional damage in her insurance policy. Jessica was distraught by this news, as Michael had not been living on the property for many months, and she had forgotten to cancel the policy due to the stress of her divorce proceedings. She had appealed the decision and argued that Michael was no longer living on the property and therefore she did not give him permission to enter her home. However, the insurance company held firm on its original decision to deny the claim. They cited that, as Michael was co-insured for the property, the insurance company was not liable for damage done by any co-insured individuals. Jessica ended up being left to pay the costs of repairing the damage to her home and replacing her broken items. She felt that this left her in an even more precarious financial situation and added to her ongoing trauma.
To protect the anonymity of those involved, this is a fictionalised account drawn from an amalgamation of real-life stories, experiences and testimonials gathered during the research process for this brief. Any resemblance to actual individuals is purely coincidental.
Conflict of interest/acknowledgment statement:
N/A.
Support
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Disclaimers
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Reference list:
Allianz Australia. (n.d.). Family violence policy. Allianz.com.au. Retrieved July 8, 2026, from https://www.allianz.com.au/help-and-contact/family-violence-policy.html
Australia’s National Research Organisation for Women’s Safety [ANROWS]. (2024). Financial abuse: an insidious form of domestic violence [Submission]. https://anrows.intersearch.com.au/entities/publication/25b3e168-26f3-4760-babf-8cf980909213
Economic Abuse Reference Group. (2017). Insurance and Family Violence. https://earg.org.au/wp-content/uploads/2025/07/insurance-for-website-public-sharing.pdf
Financial Rights Legal Centre. (2024). A fairer approach to general insurance. https://financialrights.org.au/wp-content/uploads/2025/04/fr-brief-fairer-approach-general-insurance.pdf
Financial Rights Legal Centre. (2024). Family Violence and General Insurance: Updated desktop audit of family violence policies. https://financialrights.org.au/wp-content/uploads/2024/08/240802_GIFVDesktopAuditUpdate_FINAL.pdf
Fitzpatrick, C. (2024, March 11). Insurance is the latest weapon financial abusers use against their partners. Here’s how we fix it. UNSW Sydney. https://www.unsw.edu.au/newsroom/news/2024/03/insurance-latest-weapon-financial-abuse-how-to-fix
Fitzpatrick, C. (2024). Designed to Disrupt: Reimagining general insurance products to improve financial safety. Centre for Women’s Economic Safety. https://cwes.org.au/wp-content/uploads/2024/03/CWES_DTD-GI_Issue2_FINAL_Singles.pdf
Insurance Contracts Act 1984 (Cth). https://www6.austlii.edu.au/cgi-bin/viewdb/au/legis/cth/consol_act/ica1984220/
Insurance Council of Australia. (n.d.). What is retail insurance? https://insurancecouncil.com.au/resource/q-what-is-retail-insurance/
Parliamentary Joint Committee On Corporations and Financial Services. (2024). Financial abuse: an insidious form of domestic violence. https://otd.aph.gov.au/public-api/api/documents/8604/files/14591
Peck, I., & Campisi, G. T. (2018, October 19). Protecting Innocent Co-Insureds in Ontario. Stieber Berlach LLP. https://www.sblegal.ca/protecting-innocent-co-insureds-in-ontario/
Royal Automobile Club of Victoria [RACV]. (n.d.). Managing joint insurance policies. https://www.racv.com.au/help-and-support/joint-policies.html
Wood, D. (2024, May 23). Domestic violence survivor calls for change to insurance contracts. Insurance Business Australia. https://www.insurancebusinessmag.com/au/news/breaking-news/domestic-violence-survivor-calls-for-change-to-insurance-contracts-490345.aspx
Wood, D. (2024, May 2). Violence against women is increasing – what can insurers do? Insurance Business Australia. https://www.insurancebusinessmag.com/au/news/breaking-news/violence-against-women-is-increasing--what-can-insurers-do-487519.aspx
Wotton + Kearney. (2024, June 17). Wotton + Kearney Submission to the Inquiry into Financial Services Regulatory Framework in Relation to Financial Abuse in Australia (Inquiry). https://share.google/fr6zp1IhcYXKndDZk
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