Victorian Consolidated Legislation

Credit Act 1984 - SECT 130

Contents of contracts of insurance

130. Contents of contracts of insurance



(1) A contract of insurance (other than compulsory insurance) that is entered
into in relation to a regulated contract and to which the debtor is a party
shall be in writing and shall-

   (a)  identify the subject-matter of the insurance;

   (b)  state the name and address of the insured person; and

   (c)  include a statement of-

   (i)  each amount for which insurance is or is to be provided or the manner
        in which each such amount may be determined;

   (ii) the period for which insurance is or is to be provided;

   (iii) the risks to which the insurance relates;

   (iv) each amount payable under the contract of insurance in respect of the
        insurance of property to which the regulated contract relates;

   (v)  each amount payable under the contract of insurance in respect of
        insurance against a risk referred to in clause 1(e) of Schedule 2,
        clause 1(b) of Schedule 4 or clause 1(k) of Schedule 7; and

   (vi) each other amount (if any) payable under the contract of insurance in
        respect of insurance of property subject to a mortgage relating to the
        regulated contract.

(2) Where a contract of insurance-

   (a)  is entered into between the debtor and an insurer in relation to a
        regulated contract-the insurer shall, within fourteen days after the
        contract of insurance is entered into, give to the debtor a copy of
        the contract of insurance; or

   (b)  has been or is entered into between the credit provider and an insurer
        in relation to a regulated contract and the debtor has a beneficial
        interest thereunder-the credit provider shall, within fourteen days
        after the beneficial interest is acquired by the debtor, give to the
        debtor a written notice containing the prescribed particulars relating
        to the contract of insurance.



(3) A provision with respect to the submission to arbitration of any matter
arising out of a contract of insurance referred to in subsection (1) does not
bind the insured except where the provision is contained in a contract or
agreement entered into after a difference or dispute has arisen between the
insurer and the insured, providing for the submission to arbitration of that
difference or dispute.

(4) A person, not being the insured, shall not enter into a contract of
insurance that does not comply with subsection (1).

Penalty: 10 penalty units.