Your Duty of Disclosure
Before or at the time you enter into a contract of general insurance with us, you have a duty, under the Insurance Contracts Act 1984, 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 insurance and, if so, on what terms.
When you first enter into a policy with us, you will be asked questions relevant to your policy. In answering questions, you must;
• answer all questions giving honest and complete answers;
• tell us everything that you know; and
• tell us everything that a reasonable person in the circumstances could be expected to tell us.
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 matters:
• that diminish the risk to be undertaken by us;
• that are of common knowledge;
• that we know or, in the ordinary course of our business, ought to know; or
• for 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 or may cancel the contact.
If your non-disclosure is fraudulent, we may also have the option of avoiding the contract from its beginning.