What is my duty of disclosure?
You have a legal duty of disclosure to us whenever you apply for or change a policy.
What you must tell us
If we ask you questions that are relevant to our decision to insure you and on what terms, you must tell us everything that you know, or could reasonably be expected to know, is relevant to our decision whether to insure you, and if we do on what terms. You have this duty until we agree to insure you. Your duty does not require you to disclose anything:
- that reduces the risk to be undertaken by us;
- that is generally well known;
- that we know or, in the ordinary course of our business, ought to know; or
- in respect of which we have waived your duty.
If you do not tell us
If you do not answer our questions honestly or do not properly disclose to us, we may reduce or refuse to pay a claim and/or may cancel the policy. If you act fraudulently in answering our questions or not disclosing to us, we may refuse to pay a claim or treat the policy as never having existed.
Your general duty applies to changes
Your general duty applies in full when you change or reinstate the policy.
Your general duty is limited for new Policies
When you apply for a new policy your duty of disclosure applies, but you do not need to disclose something to us unless we specifically ask you about it. However you must be honest in answering any questions we ask you. You have a legal duty to tell us anything you know, and which a reasonable person in your circumstances would include in answering the questions. We will use the answers in deciding whether to insure you and anyone else to be insured under the same policy, and on what terms.
Who needs to tell us
It is important that you understand you are disclosing to us and answering our questions for yourself and anyone else you want to be covered by the policy.