Commonwealth Consolidated Regulations

[Index] [Table] [Search] [Search this Regulation] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INSURANCE CONTRACTS REGULATIONS 1985 - SCHEDULE 1

Writing to inform insureds of general nature and effect of duty of disclosure

(subregulation 3 (1))

Part 1 Contracts of general insurance
Your 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 , to disclose to the insurer every matter that you know, or could reasonably be expected to know, is relevant to the insurer's decision whether to accept the risk of the insurance and, if so, on what terms.
You have the same duty to disclose those matters to the insurer before you renew, extend, vary or reinstate a contract of general insurance.
Your duty however does not require disclosure of matter:

— that diminishes the risk to be undertaken by the insurer;

— that is of common knowledge;

— that your insurer knows or, in the ordinary course of his business, ought to know;

— as to which compliance with your duty is waived by the insurer.

Non-disclosure
If you fail to comply with your duty of disclosure, the insurer may be entitled to reduce his liability under the contract in respect of a claim or may cancel the contract.
If your non-disclosure is fraudulent, the insurer may also have the option of avoiding the contract from its beginning.
Part 2 Contracts of life insurance
Your duty of disclosure
Before you enter into a contract of life insurance with an insurer, you have a duty, under the Insurance Contracts Act 1984 , to disclose to the insurer every matter that you know, or could reasonably be expected to know, is relevant to the insurer's decision whether to accept the risk of the insurance and, if so, on what terms.
You have the same duty to disclose those matters to the insurer before you renew, extend, vary or reinstate a contract of life insurance.
Your duty however does not require disclosure of a matter:

— that diminishes the risk to be undertaken by the insurer;

— that is of common knowledge;

— that your insurer knows or, in the ordinary course of his business, ought to know;

— as to which compliance with your duty is waived by the insurer.

Non-disclosure
If you fail to comply with your duty of disclosure and the insurer would not have entered into the contract on any terms if the failure had not occurred, the insurer may avoid the contract within 3 years of entering into it. If your non-disclosure is fraudulent, the insurer may avoid the contract at any time.
An insurer who is entitled to avoid a contract of life insurance may, within 3 years of entering into it, elect not to avoid it but to reduce the sum that you have been insured for in accordance with a formula that takes into account the premium that would have been payable if you had disclosed all relevant matters to the insurer.
Part 3 Certain eligible contracts of insurance

What you must tell us
When answering our questions, you must be honest and you have a duty under law to tell us anything known to you, and which a reasonable person in the circumstances, would include in answer to the question. We will use the answers in deciding whether to insure you and anyone else to be insured under the policy, and on what terms.
Who needs to tell us
It is important that you understand you are answering our questions in this way for yourself and anyone else whom you want to be covered by the policy.
If you do not tell us
If you do not answer our questions in this way, we may reduce or refuse to pay a claim, or cancel the policy. If you answer our questions fraudulently, we may refuse to pay a claim and treat the policy as never having worked.

[Index] [Table] [Search] [Search this Regulation] [Notes] [Noteup] [Previous] [Next] [Download] [Help]