Before you enter into an insurance contract, you have a duty to tell the insurer anything that you know, or could reasonably be expected to know, may affect their decision to insure you and on what terms. This is called your “Duty Of Disclosure” and is contained in the Product Disclosure Statement of any insurance product you apply for. These include items that may increase your chance of making a claim.

You have this duty until the insurer agrees to insure you and issues your contract of insurance.

For general insurance products, like business insurance, you have the same duty before you renew, extend, vary or reinstate an insurance contract.

If you do not tell the insurer anything you are required to, then there could be material adverse consequences regarding any claims payments and the continuation of your insurance cover.

Put simply, your Duty Of Disclosure means you should not lie to the insurance company or fail to tell them something relevant to the risk of you making a claim.

The golden rule is ‘if in doubt, you must disclose’.

What is important to note is that your duty of disclosure applies during the application process right up until the policy is issued.  So if anything happens after you submit your application, until the date your policy is accepted, then you must tell your insurer.

The video below is useful to view for anyone taking out, increasing or amending life insurance, trauma insurance or disability cover.

Please contact your adviser directly or call 1300 796 577 if you have any questions.