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then the importer goes into liquidation when the product is found to be faulty,” he says. “The two risks compound, because businesses and consumers that face major out-of-pocket expenses are indisputably less likely to take the necessary action to remove and replace the faulty product – heightening the longterm danger to life and property.” Mr Davenport believes the authorities were slow to act, but welcomes the national recalls that were eventually achieved. However, the regulatory environment that allowed the failures

to occur remains the same. The ACA wants changes to current rules allowing manufacturers and importers of electrical cabling to self-assess compliance with the Australian standard. “We believe compliance should be upgraded from the existing system of self-assessment to a more rigorous testing regime,” says Mr Davenport. “This should apply to all products on the market. “We also believe there should be a more stringent regime of ongoing product testing, to avoid the situation of a ‘golden insuranceNEWS

sample’, where an importer brings a compliant product for testing but the mass-produced material does not reach this same standard.” Addressing the problem will take co-operation across jurisdictions, and additional resources. “We acknowledge that both of these are difficult to achieve,” Mr Davenport says. “However, if governments do not address the ease with which substandard electrical cables can be sold into the Australian market, there will be more widespread failures.

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Profile for Insurance News (the magazine)

OCT/NOV 2015 - Insurance News (the magazine)  

It didn’t rain enough at Monte Carlo during the September Reinsurance Rendezvous, putting paid to the hopes of industry heavyweights who wer...

OCT/NOV 2015 - Insurance News (the magazine)  

It didn’t rain enough at Monte Carlo during the September Reinsurance Rendezvous, putting paid to the hopes of industry heavyweights who wer...