KNOWLEDGE CENTRE
Timeframes
How Long Does an Insurance Claim Take in Australia?
Most claims take two to twelve weeks — but the timeframe matters less than whether your insurer is meeting their communication obligations. What the Codes of Practice require.
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Most insurance claims in Australia are resolved within two to twelve weeks, depending on their complexity - although some claims take significantly longer.
There is no single legal deadline, but insurers are bound by industry Codes of Practice that set expectations around timeframes, communication, and what you can do when an insurance claim delay occurs.
At a glance:
Most insurance claims take 2-12 weeks, depending on complexity.
Complex claims can take several months.
Insurers must communicate clearly and explain any delays.
Long periods with no updates are a red flag, not a normal part of the process.
How Long Should My Claim Actually Take?
While every claim is different, most fall into one of three categories:
Simple claims - such as minor motor vehicle damage or small property losses - are typically assessed within two to four weeks, assuming the insurer has received all necessary documents.
Moderately complex claims - including larger home insurance claims, claims involving multiple repair quotes, or those requiring third-party input - generally take four to eight weeks.
Complex claims can take several months. These include:
life insurance claims
trauma, TPD, and income protection claims
business interruption claims
complex property losses
claims requiring medical or specialist reports
These claims often involve multiple parties, external assessments, and detailed policy interpretation - all of which can legitimately extend the timeline.
What Are Insurers Actually Required to Do?
Timeframes alone don't tell the full story. How your insurer communicates with you while the claim is in progress matters just as much.
Under both the General Insurance Code of Practice and the Life Insurance Code of Practice, insurers are required to:
handle claims efficiently, honestly and fairly
communicate clearly with policyholders throughout the process
keep you informed of claim progress at regular intervals
explain the reasons for any delays
respond to written correspondence within a reasonable timeframe
When complaints are escalated to the Australian Financial Complaints Authority (AFCA), these Codes are taken into consideration as part of AFCA's assessment of what is fair in the circumstances. In practice, breaches of the Codes can carry significant weight when AFCA assesses whether a claim has been handled fairly.
What Is the 10-Business-Day Rule?
One of the most useful and least-known provisions in the General Insurance Code of Practice is the expectation that insurers respond to customer correspondence within 10 business days.
This applies to written requests such as:
emails asking for a claim update
requests for clarification about a decision
questions about what is causing a delay
If the insurer cannot provide a complete response within that timeframe, they are expected to acknowledge your correspondence and advise what will happen next.
This rule doesn't mean your claim must be decided in 10 business days. It means your questions should not go unanswered. That distinction matters when you're trying to work out whether silence is normal - or a problem worth acting on.
For a better understanding of the 10-business-day rule and what to do when communication stalls read: My Insurer Isn't Responding - What are my Rights? →
How Long Before You Can Complain About a Delay?
This is one of the most common questions policyholders ask - and the answer is more straightforward than most people expect.
You can lodge a complaint with your insurer's Internal Dispute Resolution (IDR) team at any point. There is no mandatory waiting period. If you feel your claim is being mishandled, stalled, or poorly communicated, you are entitled to use the formal complaints process immediately.
AFCA generally requires you to attempt resolution through the insurer's IDR process first. But once IDR has been attempted and either not resolved or rejected, AFCA can become involved.
In practice, lodging an IDR complaint often does more to restart a stalled claim than repeated follow-up calls ever will. It changes the internal category of your file from a workload item to a compliance matter - and insurers respond accordingly.
What Does a Stalled Claim Actually Look Like?
A long claim is not automatically a problem. But certain patterns are worth paying attention to:
weeks passing without any update after you've provided documents
repeated requests for information you've already supplied
vague status updates with no specific timeline or next step
your claim being transferred between multiple staff members
explanations that keep shifting without resolution
If several of these apply, the issue is likely not the complexity of your claim - it's that the claim has lost momentum internally.
For a detailed breakdown of what to watch for, read: 7 Signs Your Insurer May Be Stalling →
What Can I Do If My Claim Is Taking Too Long?
1. Request a clear status update in writing.
Ask specifically for the current stage of the claim, what information is still outstanding, and when you can expect the next update. Written requests create a paper trail and are harder to ignore than phone calls.
2. Keep a running timeline.
Log every email, phone call, and document submission with dates. This record becomes your evidence if you need to escalate - and it makes it immediately obvious where progress has stalled.
3. Reference the Code of Practice.
A written follow-up that references the General Insurance Code of Practice signals that you understand the standards your insurer is held to. It often prompts a faster, more substantive response.
4. Lodge a formal complaint through IDR.
If communication has broken down, use the insurer's Internal Dispute Resolution process. This formally escalates the matter and applies regulated response timeframes.
5. Escalate to AFCA if needed.
If IDR doesn't resolve the issue, AFCA provides free, independent dispute resolution for consumers.
What If My Claim Has Been Declined, Not Just Delayed?
If you're navigating a trauma, life, or TPD claim that has been declined or is under dispute, the process is significantly more involved than a standard general insurance claim. Policy definitions, medical evidence, and insurer interpretation all come into play in ways that aren't always transparent.
For a detailed account of how a confirmed stroke diagnosis still resulted in a declined claim - and what ultimately changed the outcome - read: When a Confirmed Stroke Isn't Enough: My Crisis Claim Story →
Why Understanding the Process Matters
Understanding your rights is the first step.
Acting on them - calmly, consistently, and with the right documentation - is what actually moves a claim forward.
If Your Claim Has Stalled, You Need a System
Knowing your rights is one thing. Having a clear system for tracking what's happened, communicating professionally under pressure, and knowing exactly when and how to escalate - that's what actually moves a stalled claim forward.
The Insurance Claim Delay Rescue Kit was built for this exact situation. It includes a structured tracking system to log every interaction, a framework for identifying whether your delay is reasonable, and a library of AI-powered prompts to help you write calm, effective correspondence - even when you're anything but calm.
FREE TOOL
Not sure what's happening with your claim?
Claim Pulse is a free 5-minute read on how your claim is being handled. Answer eight questions and get a clear picture of the patterns in your responses - what they usually indicate and one step that creates immediate clarity.