Your Duty of Disclosure

Before you enter into a policy of insurance you have a duty under the Insurance Contracts Act 1984 to disclose to us every matter that you know, or could reasonably be expected to know, is relevant to our decision whether to accept the risk of the insurance and, if so, on what terms. The same duty applies before the Policy is extended, varied or reinstated. The duty however does not require disclosure of a matter a) that diminishes the risk b) that is of common knowledge c) that we know, or in the ordinary course of our business, ought to know; or d) in respect of which we have waived compliance.

If the duty is not complied with and we would not have entered into the contract on any terms had we been aware of the relevant matter, we may avoid the Policy within three years of entering into it. If the non-disclosure is fraudulent, we may avoid the Policy at any time. If we are entitled to avoid the Policy we may, within three years of entering into it, elect not to avoid it but to reduce the amount of cover in accordance with a formula that takes into account the premium that would have been payable if all relevant matters had been disclosed to us.