Legal
Duty of Disclosure
Before you enter into a contract of general insurance with an insurer, you have a duty under the Insurance Contracts Act 1984 (Cth) to disclose to the insurer every matter that you know, or could reasonably be expected to know, is relevant to the insurer's decision to accept the risk and, if so, on what terms.
Your duty before entering a contract
You must disclose everything you know — and everything a reasonable person in the circumstances would know — that is relevant to the insurer's decision to insure you, and on what terms. You do not need to disclose something that:
- Diminishes the risk to the insurer
- Is common knowledge
- The insurer knows or should know in the ordinary course of their business
- The insurer has indicated they do not want to know
Your duty when renewing, varying, or reinstating a contract
The same duty applies when you renew, vary, reinstate, or extend an existing insurance contract. You must disclose any changes in your circumstances or any new information that would be relevant to the insurer.
Consequences of non-disclosure
If you fail to comply with your duty of disclosure, the insurer may be entitled to reduce their liability under the policy in respect of a claim, or may cancel the policy. If your non-disclosure is fraudulent, the insurer may also have the option of voiding the policy from its inception.
What you need to tell us
If you are unsure whether something needs to be disclosed, err on the side of disclosure. If you are unsure after speaking with us, please contact us at hello@insuranceservice.holdings and we will help you understand your obligations.