Federal Treasury is seeking feedback on draft regulations to keep some “high consumer value” add-on insurance products exempt from the deferred sales model’s four-day pause rule.

The exemptions, including for comprehensive motor and home building insurance, will expire on October 5 and the government intends to continue with the status quo until 2031.

Financial Services Minister Daniel Mulino says the add‑on products “represent a high level of consumer value or are mandatory”.

The deferred sales model for add‑on insurance was introduced in 2021 – one of many reforms recommended following the 2018 Hayne royal commission into financial services sector misconduct.

It gives consumers a four-day deferral period after buying an add-on product, to consider the cover or other alternatives.

Treasury says its review “concluded that, on balance, the evidence demonstrated the existing class exemptions provide benefits justifying their continued exemption from the [model].

“The continued exemption of these classes of add-on insurance is consistent with the [model’s] intended purpose of preventing pressure selling of low-value products and allowing time for consumers to consider the add-on insurance product and make an informed decision.

“These exempt products are not low-value in nature, unlike the add-on insurance products identified in the Hayne royal commission that warrant the deferred sales model framework, and in some cases are time-sensitive, being needed at the time the principal product or service is purchased, or the next day.”

Submissions must be made by August 7. See details here.