The rescue package was aimed at assisting consumers who had been covered by a HIH Casualty & General Insurance Limited (HIH) or FAI General Insurance Company Limited (FAI) home warranty insurance policy.
Building Insurers’ Guarantee Corporation
In response to the liquidation of HIH/FAI, the government established the Building Insurers’ Guarantee Corporation (BIG Corp) under the Insurance (Policyholders Protection) Legislation Amendment Act 2001.
BIG Corp provided the protection consumers would have received under the home warranty insurance policies issued by HIH and FAI.
Since September 2011 BIG Corp has been administered by NSW Self Insurance Corporation (now icare HBCF) which also administers the Home Building Compensation Fund (formerly the Home Warranty Insurance Fund).
Making a new claim with BIG Corp
In June 2017, NSW Parliament passed the Home Building Amendment (Compensation Reform) Act 2017. Amongst other things, the Act closes BIG Corp to any new or reactivated claims. Whilst its provisions have not yet started, it is anticipated that this will occur shortly.
It’s unlikely that new claims lodged with BIG Corp can be made, as they would need to have been within the statutory timeframes below:
- During the seven-year period of insurance (from the date of the completion of the building work)
- If the defect became apparent during the last six months of the seven-year period of insurance, within six months of the homeowner becoming aware of the defective work.