You have probably heard the term Duty of Disclosure in your dealings with the team at Bridges. But what exactly does it mean?
Essentially it is about you, the policyholder, being open and honest when arranging insurance coverage. Insurance is a contract of ‘good faith’ meaning that it’s based on trust, openness and full disclosure of all of the things that could make the risk ‘riskier’. This helps make things fair, prevents confusion and keeps your insurance policy relevant to your circumstances. Governed by the Insurance Law Reform Act 1977, policyholders are required to disclose material facts that could influence the insurer’s risk assessment and coverage decisions. And it’s not just about what they specifically ask – it’s also anything that you think is important. As your insurance advocate, we always encourage you to be upfront about the things you might not be so proud of (criminal convictions, speeding tickets, DIC’s etc) as well as anything about the items being insured that might make them less desirable to insure, such as car modifications, underage drivers, pre-existing damage, previous incidents not claimed etc.
If you don’t follow the rules of Duty of Disclosure, sadly there can be some pretty hefty consequences. If you deliberately omit important details or intentionally lie, the insurance company can say “no” to your policy and/ or claim. Therefore it’s really important that both you and the insurers are open and honest. They ask the right questions and you give them the real facts. This teamwork makes sure you get the right coverage and keeps things fair and square.
If you have any queries or want to check what information we have in regards to your policy, then please reach out to your Broker who’ll be happy to assist.