Terms & Condition
DUTY OF DISCLOSURE
In order to make an informed assessment of the risk and calculate the appropriate premium, your insurer needs information about the risk you are asking to insure. Before you enter into a contract of insurance, you have a duty under the Insurance Contracts Act 1984 to disclose to your insurer every matter that you know, or could reasonably be expected to know, is relevant to the insurer’s decision whether to accept the risk and, if so, on what terms. The duty also applies when you renew, extend, vary or reinstate a contract of insurance.
You do not have to disclose anything that:
- Reduces the risk to be undertaken by the insurer
- Is common knowledge
- Your insurer knows, or in the ordinary course of business, ought to know, or
- The insurer has waived your obligation to disclose
If you do not comply with your duty of disclosure, your insurer may be entitled to reduce it’s liability in respect of a claim or may cancel your contract of insurance. If the non-disclosure was fraudulent, the insurer may be able to avoid (or cancel) the contract of insurance from its beginning. This would have the effect that you were never insured.
One important matter to be disclosed is the history of losses suffered by the person seeking insurance or any closely associated person or entity. As you are responsible for checking that you have made complete disclosure, we suggest that you keep an up-to-date record of all such losses and claims. If you have any queries about whether information needs to be disclosed, please contact us.
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GENERAL ADVICE WARNING
The information on this website is general advice only and does not take into account any of your objectives, your financial situation or your needs. For this reason, before you act on this advice you should consider its appropriateness, taking into account your own objectives, financial situation and needs. Before you make a decision about whether to acquire any insurance, you should obtain and read the Product Disclosure Statement (PDS).
