Commonwealth Consolidated Acts

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INSURANCE CONTRACTS ACT 1984 - SECT 21

The insured's duty of disclosure

             (1)  Subject to this Act, an insured has a duty to disclose to the insurer, before the relevant contract of insurance is entered into, every matter that is known to the insured, being a matter that:

                     (a)  the insured knows to be a matter relevant to the decision of the insurer whether to accept the risk and, if so, on what terms; or

                     (b)  a reasonable person in the circumstances could be expected to know to be a matter so relevant, having regard to factors including, but not limited to:

                              (i)  the nature and extent of the insurance cover to be provided under the relevant contract of insurance; and

                             (ii)  the class of persons who would ordinarily be expected to apply for insurance cover of that kind.

             (2)  The duty of disclosure does not require the disclosure of a matter:

                     (a)  that diminishes the risk;

                     (b)  that is of common knowledge;

                     (c)  that the insurer knows or in the ordinary course of the insurer's business as an insurer ought to know; or

                     (d)  as to which compliance with the duty of disclosure is waived by the insurer.

             (3)  Where a person:

                     (a)  failed to answer; or

                     (b)  gave an obviously incomplete or irrelevant answer to;

a question included in a proposal form about a matter, the insurer shall be deemed to have waived compliance with the duty of disclosure in relation to the matter.



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