Important informationShow more
Duty of disclosure
Before you enters into any contract of insurance with an insurer, you have a duty to disclose to the Insurer every matter that it knows, or a reasonable person in the circumstances could be expected to know, is relevant to the insurer’s decision whether to accept the risk and, if so, on what terms.
You have the same duty to disclose those matters to the Insurer before they extend, vary or reinstate a contract of life insurance.
However, your duty of disclosure does not require disclosure of a matter:
- that diminishes the risk to be undertaken by the Insurer
- that is of common knowledge
- that the Insurer knows or, in the ordinary course of its business, ought to know, or
- where the Insurer has waived disclosure.
The duty of disclosure continues until you are informed that your application for insurance is accepted or declined.
If you fail to comply with your duty of disclosure or makes a misstatement of relevant information and the Insurer would not have entered into the contract if the failure had not occurred, we may avoid the contract within three years of entering into it. If you fail to comply with your duty of disclosure or makes a misstatement of relevant information, we may avoid the contract at any time.
If we are entitled to avoid a contract of life insurance we may, within three years of entering into it, elect by written notice not to avoid it but to reduce the sum you have been insured for in accordance with a formula that takes into account the premium that would have been payable if you had disclosed all relevant information to us. For cover other than death cover:
- we can elect to reduce the sum insured according to the formula referred to above at any time not just within the first 3 years of entering into the contract, or
- if we have not avoided the contract or varied the sum insured, we can vary the contract in a way that places us in the same position we would have been if the non-disclosure or misrepresentation had not occurred.
Treatment of policies in exercising our rights
In exercising our rights we have to treat some policies as comprising 2 or more separate contracts of life insurance and elect whether to apply their rights to each of them separately. A policy must be treated as if it comprises 2 or more contracts of life insurance if any of the following apply:
- it includes 2 or more different groups of provisions;
- there are 2 or more lives insured; or
- underwritten cover together with cover which is not underwritten, or is underwritten on different terms, apply.
We may collect personal information directly from you, your employer or your financial planner. Our main purpose in collecting personal information about you is to establish and manage your account. If we are not provided with this information, then we may not be able to do so.
We may collect information it is required or authorised under a law including the Superannuation Industry (Supervision) Act 1993 and the Corporations Act 2001.