When you apply for an insurance policy, renew one or make changes to an existing policy, you’re required to share certain information with your insurer. 

This is called your Duty of Disclosure. It’s a legal requirement under the Insurance Contracts Act 1984 (Cth) in Australia. 

It basically means that you need to be open and honest about anything that could affect the insurer’s decision to provide you with cover or the terms and price of that cover.

Insurers are taking on the risk of covering you. For this reason, they need a clear picture of what they’re signing up for. 

Whether you’re insuring your home or your business, the information you provide helps them decide if they can offer you a policy and at what cost. 

Being upfront ensures everyone’s on the same page.

What Happens If You Don’t Meet Your Duty of Disclosure?

Always remember that failure to meet your Duty of Disclosure can lead to issues down the track, especially when you need to make a claim. 

Here’s what might happen:

• Claim Reduction: Your insurer might reduce the amount they pay out on a claim to reflect what they would have done if they had all the correct information.
  
  
• Claim Denial: In some cases, your claim could be rejected altogether.
  
  
• Policy Cancellation: If the non-disclosure is serious, such as when it’s fraudulent, the insurer might cancel your policy or treat it as if it never existed. Although in such instances, they’d usually refund your premiums.

The Duty of Disclosure is about building trust between you and your insurer. It’s a key step in getting the right insurance.

By being open and honest, you help ensure your policy works the way it’s supposed to when you need it most. 

If you’re ready to explore your insurance options or need help with your Duty of Disclosure, get in touch with us at Tank Insurance!

Let’s make sure you’re sharing all the relevant details to secure the best cover.