Commonwealth Consolidated Acts

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.