Privacy Act (Cth) - Amended in 2001

The Privacy Act (Cth) in Australia was amended on 21 December 2001. These amendments added to existing responsibilities and have implications for the Insurance Industry.

The Amended Act contains 10 National Privacy Principles (NPP). These are: -

• NPP 1 Collection
• NPP 2 Use and disclosure
• NPP 3 Data Quality
• NPP 4 Data Security
• NPP 5 Openness
• NPP 6 Access and Correction
• NPP 7 Unique Identifiers
• NPP 8 Anonymity
• NPP 9 Transborder Data Flows
• NPP 10 Sensitive information

A seminar conducted by the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) Victorian Branch Claims Discussion Group focussed on the collection of information pertaining to claims.

This highlighted that Insurers require a Privacy Policy covering the collection of information by them and their appointed loss adjuster or contractors engaged by loss adjusters e.g. investigators.

Prior to information being collected they should take "reasonable" steps to advise the Individual that they will collect certain information from a third party (NPP 1.3). This information can only be used for the primary purpose of collection e.g. the claim (NPP 2.1).

Under the Act access to information collected about an Individual must be provided if requested by that individual. However, access by a Policyholder to information collected by an Insurer or loss adjuster may be denied, for example:

• Where it would impact the privacy of other individuals (NPP 6.1 (c)).
• Where the information relates to existing or anticipated legal proceedings (NPP 6.1 (e)).
• Where the information is collected in connection with a commercially sensitive decision making process an explanation rather than direct access may be provided (NPP 6.2).

The information provided above is of a general nature. For specific advice please refer to your solicitors.

Author

Published with permission of Claim Solutions Pty Ltd.

Insurance Policy

Country: - Australia

Policy Description: - Various

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