Duty of Disclosure
Your Duty of Disclosure when you enter into the contract with us for the first time
When answering our specific questions that are relevant to our decision whether to accept the risk of the insurance and, if so, on what terms, you must be honest and disclose to us anything that you know and that a reasonable person in the circumstances would include in answer to the questions.
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 contract.
Your Duty of Disclosure when you vary, extend or reinstate the contract
When you vary, extend or reinstate the contract with us, your duty is to disclose to us every matter that you know, or could reasonably be expected to know, is relevant to our decision whether to accept the risk of the insurance and, if so, on what terms.
What you do not need to tell us
Your duty however does not require disclosure of any matter:
- that diminishes the risk to be undertaken by us; or
- that is of common knowledge; or
- that we know or, in the ordinary course of our business as an insurer, ought to know; or
- as to which compliance with your duty is waived by us.
If you fail to comply with your duty of disclosure, we may be entitled to reduce our liability under the contract in respect of a claim, cancel the contract or both.
If your non-disclosure is fraudulent, we may also have the option of avoiding the contract from its beginning.