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Your Duty of Disclosure

A life insurance policy is simply a written contract between you and the nominated insurer. You have a responsibility under the Insurance Contracts Act 1984, to disclose every bit of information that you know, or could reasonably be expected to know, that is going to be relevant to the insurer, when they assess your request for insurance.


If you fail to disclose all relevant information to the insurer at the time of your policy request and the insurer would not have entered into the contract on any terms if the failure had not occurred, then the insurer may avoid the contract within three years of entering into it. If your non-disclosure is fraudulent, the insurer may elect to avoid the contract at any time from the actual policy start date.

An insurer who is entitled to avoid a contract of insurance may, within three years of entering into it, elect not to avoid it but to reduce the Sum Insured in accordance with a formula that takes into account the benefit amount that would have been payable if you had disclosed all relevant details to the insurer before your policy had commenced.

Why's Tip!

Remember to answer all the questions on your insurance application as best you can. Intentionally leaving a section blank or not disclosing information that may be relevant to the assessment of your application carries a high risk of biting you at claim time.

If you don’t remember an important fact about your medical history it’s best to contact your General Practitioner (GP) and go through the medical history section of the application with them.

Insurers View

Before you enter into an insurance policy, the Insurance Contracts Act 1984 requires you to provide the insurer with all the necessary information to help them decide whether your request for cover can be accepted and if so, what the premium and
policy terms will be.

Duty of Disclosure Requirements

Everyone who is applying for insurance must comply with the applicable duty.

Duty Breach Consequences

If you don’t comply with the duty and intentionally left something out to benefit e.g. to obtain cheaper premiums, the insurer may cancel your policy or reduce the amount you get at claim time. If fraud is involved, the insurers will treat the policy as if it never existed and pay nothing.

Our expert team will guide you through the entire process step by step and match your needs with the most suitable cover options that also fit with your budget.

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