Internal Dispute Resolution (IDR)

Internal Dispute Resolution (IDR) is the first formal step in resolving disputes with your insurer and is a regulatory requirement under ASIC's RG 271. All AFSL holders, including insurers and brokers, must have an IDR process that is free, accessible, and fair. When you make a complaint, the insurer must acknowledge it within 24 hours (or 1 business day) and provide a unique reference number. Standard complaints must be resolved within 30 calendar days, though traditional default notices (like delayed premium payment) have shorter timeframes. For delays beyond 30 days, the insurer must update you every 10 business days explaining the delay and expected resolution timeframe. The IDR process involves impartial review by someone not directly involved in the original decision and may include reviewing the claim assessment, policy interpretation, or service quality. If you're dissatisfied with the IDR outcome or if the insurer doesn't respond within required timeframes, you have the right to escalate to AFCA (external dispute resolution). Insurers must clearly explain IDR and EDR processes in their communications and provide AFCA contact details in their final IDR response.