Notice to Intending Insured
The Insurance Contracts Act 1984 came into operation on the January, 1986. The provisions of the Act are very important to all parties to any contract of insurance or proposed contract of insurance (‘the contract”). Some of them require Insurers to provide certain notices, documents and information to the Insureds. After reading this, if any matter relating to the policy wording or proposal is unclear to you or you have any questions at all in relation to the insurance, please contact us for an answer or explanation as soon as possible.
Your Duty of Disclosure
Before you enter into a contract of general insurance with an Insurer, you have the duty, under the Insurance Contracts Act 1984 to disclose to the 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 of the insurance and if so, on what terms. You have the same duty to disclose those matters to the Insurer before you renew, extend, vary or reinstate a contract of general insurance.
Your duty, however, does not require disclosures of matter:
1. that diminish the risk undertaken by the Insurer;
2. that is common knowledge;
3. that your Insurer knows, or in the ordinary course of his business, ought to know; and
4. as to which compliance with your duty is waived by the Insurer.
Consequence of Non Disclosure
If you fail to comply with your duty of disclosure, the Insurer may be entitled to reduce its liability under the contract in respect of a claim or may cancel the contract. If your non disclosure is fraudulent, the Insurer may also have the option of voiding the contract from its beginning.