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Duty of Disclosure

Before entering into a contract of general insurance with an Insurer, there is a duty, under the Insurance Contracts Act 1984, for you to disclose to the Insurer every matter which is known or could reasonably be expected to be known and which is relevant to the Insurer's decision whether to accept the risk of the insurance and, if so, on what terms.

The same Duty of Disclosure applies before renewal, extension, variation or reinstatement of a contract of general insurance.

Duty of Disclosure however does not require the disclosure of a matter that:

  1. diminishes the risk
  2. is of common knowledge
  3. the Insurer knows or, in the ordinary course of business, ought to know
  4. as to which compliance with the duty of disclosure is waived by the Insurer.


Failure to comply with Duty of Disclosure, may entitle the Insurer to reduce liability under the contract in the event of a claim or cancel the contract.

If non disclosure is fraudulent, the Insurer may also have the option of voiding the contract from time of commencement.