Your duty of disclosure
Before you enter into a contract of general insurance with an insurer, you have a duty at law and under the Insurance Law Reform Act 1977 and 1985 to disclose to the insurer every matter that you know, or could reasonably expect to know 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 matter:
- that diminishes the risk to be undertaken by the insurer;
- that is common knowledge;
- that your insurer knows or, in the ordinary course of business, ought to know;
- as to which compliance with your duty is waived by the insurer.
If you fail to comply with your duty of disclosure, the insurer may be entitled to reduce his liability under the contact 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 its beginning.
Average (underinsurance) Provisions:
As Reinstatement and Replacement Cover may be included in this policy, it is important to insure for full Replacement Cost to avoid application of the following provision.
The provision of the average clause will have effect only if the property insured under the policy is underinsured at the time of loss. If the property insured under the policy is underinsured at the time of loss, the following will apply:
-if you suffer total loss, the provision will have no effect.
-if you suffer a partial loss, the maximum amount you may recover will bear the same proportion to your actual loss as the amount for which the property insured bears the full value of the property.
-whatever your loss, in no case will you be entitled to recover more than the amount for which the property is insured.
For Example: Your property is worth $20,000. You insure it for $10,000. You suffer a loss of $5,000. If your policy is subject to average, the maximum amount you may recover will be $2,500.
Rights of subrogation
This Insurance provides that you will not be able to recover under it if you enter into any agreement, which excludes or limits your right of recovery from other parties; therefore you must not have agreed and must not agree to give away any of your rights because that will affect the subscribing Underwriters right to recover from these other parties.
Interests of other parties:
For any party to be indemnified by this insurance they must be named in the contract or otherwise be included as a party with a proven insurable interest.
Excess or a Deductible is the first amount of each claim you are required to bear yourself, may not apply to each Part. Details of the Excess (es) applicable will be shown on the Schedule against the particular Section or Part.
The Insurance proposed on this Proposal Form does not provide cover in relation to events that occurred before the contract was entered into.
Acceptance of the Proposal
The Insurance proposed on this Proposal will not be in force until the completed Proposal has been received and the risk accepted by the Insurer. The subscribing Underwriters reserve the right to decline any Proposal.
Cancellation by You
You may cancel this Policy at any time by notifying One Insurance Limited (OIL) in writing and advising of the future date on which cancellation will take effect.