INSURANCE CONTRACTS ACT 1984 - SECT 39 Instalment contracts of general insurance

INSURANCE CONTRACTS ACT 1984 - SECT 39

    Where a provision included in an instalment contract of general insurance has the effect of limiting the liability of the insurer by reference to non - payment of an instalment of the premium, the insurer may not refuse to pay a claim, in whole or in part, by reason only of the operation of that provision unless:

  (a)   at least one instalment of the premium has remained unpaid for a period of at least 14 days; and

  (b)   before the contract was entered into, the insurer clearly informed the insured, in writing, of the effect of the provision.