Duty of Disclosure
What You must tell Us
Under the Insurance Contracts Act 1984 (the Act), You have a Duty of Disclosure. The Act requires that before a policy is entered into, You must give us certain information We need to decide whether to insure You and anyone else to be insured under the Policy, and on what terms. Your Duty of Disclosure is different, depending on whether this is a new Policy or not.
Where You are entering into this Policy for the first time (that is, it is new business and is not being renewed, varied, extended or reinstated) You must tell us everything you know and that a reasonable person in the circumstances could be expected to tell Us, in answer to the specific questions We ask.
When answering our questions You must be honest.
- · Who needs to tell Us
It is important that You understand You are answering Our questions in this way for yourself and anyone else that 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.
Renewals, variations, extensions and reinstatements
Once Your Policy is entered into and is no longer new business then Your duty to us changes. You are required before You renew, vary, extend or reinstate Your Policy, to tell us everything You know and that a reasonable person in the circumstances could be expected to know, is a matter that is relevant to Our decision whether to insure You, and anyone else to be insured under the Policy, and if so, on what terms.
- · You do not have to tell Us about any matter
– that diminishes the risk;
– that is of common knowledge;
– that We know or should know in the ordinary course of our business as an insurer; or
– which we indicate We do not want to know.
- · If You do not tell Us
If You do not comply with Your Duty of Disclosure We may reduce or refuse to pay a claim or cancel Your Policy. If Your non-disclosure is fraudulent We may treat this Policy as never having worked.
The General Insurance Code of Practice
The Code aims to:
- · promote more informed relations between insurers and their customers;
- · improve consumer confidence in the general insurance industry;
- · provide better mechanisms for the resolution of complaints and disputes between insurers andtheir customers;
- · commit insurers and the professionals they rely upon to higher standards of customer service.