The Insurance and Saving Ombudsman wants to see a proposed law change around insurance go further.

The change would mean insurance companies can't say no to paying out insurance to customers who have accidentally left out information when applying for their policy.

Insurance and Savings Ombudsman Karen Stevens says [told Mike Hosking] the new fair insurance code is a great idea, but restricted to fire and general insurance.

"So it needs to apply across the board to all insurance companies - life companies, health companies, everybody in the market."

Stevens says this would mean customers who accidentally left out information, such as a minor conviction or health niggle, won't get treated as if their policies don't exist.

Insurance Council chief executive Tim Grafton says council members have already adopted the measures independently, so those with minor convictions no longer need to worry.

"It's hardly a relevant factor that you might have had that speeding ticket some years ago and you might've forgotten to record it and declare it to your insurers."