Duty of Disclosure

 

Your Duty of Disclosure & Answering Questions for Insurance Quotes

Security Industry Insurance Brokers Pty. Ltd. acts as an agent for different companies in issuing policies and handling claims.

The decision we make on behalf of the companies whether or not to insure you or fulfill a claim will depend on the information you give us. Before you enter into a contract of insurance, the Insurance Contracts Act 1984, requires you to provide us with the information we need to enable us to decide whether and on what terms your on-line application for insurance is acceptable and to calculate how much premium is required for your insurance.

You must disclose any additional or new information before we agree to renew, extend, reinstate or change any details relating to your policy.

Duty of Disclosure

Before you enter into an insurance contract with us, the Insurance Contracts Act 1984 requires you to provide us with the information we need to enable us to decide whether and on what terms your proposal for insurance is acceptable and to calculate how much premium is required for your insurance. The Act imposes a different duty the first time you enter into the policy with us to that which applies when you vary, renew, extend, reinstate or replace your policy. We set these two duties out below.

Your duty of disclosure when you enter into this policy with us for the first time
You will be asked various questions when you first apply for this policy. When you answer these questions, you must:
  • give us honest and complete answers,
  • tell us everything you know, and
  • tell us everything that a reasonable person in the circumstance could be expected to tell us.

Your Duty of Disclosure when you renew, vary, extend, reinstate or replace your policy
When you renew, vary, extend, reinstate or replace the policy your duty is to tell us before the renewal, variation, extension, reinstatement or replacement is made, every matter known to you which:

  • you know, or
  • a reasonable person in the circumstances could be expected to know, is relevant to our decision whether to insure you and whether any special conditons need to apply to your policy.


What you do not need to tell us for either duty
You do not need to tell us about any matter:

  • that diminishes our risk,
  • that is of common knowledge,
  • that we know or should know as an insurer, or
  • that we tell you we do not need to know.

Who do the above two duties apply to?
Everyone who is insured under the policy must answer the questions in this way

What happens if you or they do not comply with the relevant duty?
If you or they do not comply with the relevant duty, we may cancel the policy or reduce the amount we pay if you make a claim. If fraud is involved, we may treat the policy as if it never existed and pay nothing.

Buy using our online insurance quotes or claims you agree that in answering these questions you will comply with this duty.

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