INSURANCE CONTRACTS ACT 1984 - SECT 46 Pre - existing defect or imperfection
INSURANCE CONTRACTS ACT 1984 - SECT 46
Pre - existing defect or imperfection(1) This section applies where a claim under a contract of insurance (other than a contract of insurance that is included in a class of contracts declared by the regulations to be a class of contracts in relation to which this section does not apply) is made in respect of a loss that occurred as a result, in whole or in part, of a defect or imperfection in a thing.
(2) Where, at the time when the contract was entered into, the
insured was not aware of, and a reasonable person in the circumstances could
not be expected to have been aware of, the defect or imperfection, the insurer
may not rely on a provision included in the contract that has the effect of
limiting or excluding the insurer's liability under the contract by
reference to the condition, at a time before the contract was entered into, of
the thing.