It is a requirement of the Insurance Contracts Act 1984 and the Corporations Act 2001 that the following notices 1, 2, 3, 4, 5 and 6 be brought to your attention before you apply for insurance.
Before you enter into a contract of general insurance with an Insurer, you have a duty under the Insurance Contracts Act 1984 to disclose to the insurer every matter that you know or could reasonably be expected to know that is relevant to the insurer's decision whether to accept the risk of the insurance and, if so, on what terms.
You have the same duty to disclose those matters to the insurer before you renew, extend, vary or reinstate a contract of general insurance.
Your duty, however, does not require disclosure of a matter:
If you fail to comply with your Duty of Disclosure, the insurer may be entitled to reduce it's liability under the contract in respect of a claim or may cancel the contract. If your non-disclosure is fraudulent, the insurer may also have the option of avoiding the contract from the beginning.
The requirement of full and frank disclosure of anything which may be material to the risk for which you seek cover (claims, whether founded or unfounded) or to the magnitude of the risk is of the utmost importance with this type of insurance.
It is better to exercise caution by disclosing anything which might conceivably influence the insurer's consideration of your proposal.
The professional indemnity and management liability insurance is provided on a 'claims made and notified' basis.
This means that the policy covers you for claims made against you and notified to the insurer during the period of cover.
This policy does not provide cover in relation to:
Where you give notice in writing to the insurer of any facts that might give rise to a claim against you (as soon as reasonably practicable after you become aware of those facts but before the expiry of the period of cover) the policy will, subject to the terms and conditions, cover you notwithstanding that a claim is only made after the expiry of the period of the cover.
Upon expiry of the policy no further claims can be made thereunder and the need to maintain insurance or arrangement of Run-Off cover is essential.
You should familiarise yourself with our standard form of policy for this type of cover before submitting this proposal.
If you become aware of a claim or of circumstances that could give rise to a claim in the future, you should notify us in writing immediately, so that we can notify your insurer on your behalf.
If you become aware of a claim or circumstances and you do not notify them during the policy period, you could be left uninsured or facing a reduced payout from your insurer in respect of that claim or any future related claim.
This policy provides that if a payment in excess of the limit of indemnity available under this policy has to be made to dispose of a claim, the insurer's liability for costs and expenses incurred with its consent shall be such proportion thereof as the amount of indemnity available under the policy bears to the amount paid to dispose of the claim.
Any surplus will be deducted from claim payments.
Where another person would be liable to compensate you for any loss or damage otherwise covered by the policy, but you have agreed with that person either before or after the loss or damage occurred that you would not seek to recover any monies from that person, the insurer will not cover you under the policy for any such loss or damage.
In effecting this contract of insurance, the broker will be acting under an authority given to it by the insurer and the broker will be effecting the contract as agent of the insurer and not the insured.
Your privacy is important to Insurance House Pty Ltd ABN 33 006 500 072 AFSL 240954.
I/We acknowledge that I/We have read the Notice to the proposed Insured above, and I/We understand those notices.
Insurance House Pty Ltd
Level 3, 100 Wellington Parade, East Melbourne VIC 3002, Australia
Tel 1300 659 626 AFSL 240954 ABN 33 006 500 072