Section 35 of the Insurance Contracts Act 1984 (Cth) (Act), sets out a requirement for Insurers to notify an insured party at or before the contract was entered into where their cover deviates from the ‘Standard Cover’ in relation to a class of insurance contracts which includes: Home Building or Contents Insurance, Motor Insurance, Sickness and Accident Insurance, Consumer Credit Insurance and Travel Insurance. Such notification may be made by providing the product disclosure statement (PDS) and policy wording. The Insurance Contracts Regulations 2017 (Cth) (Regulations), sets out Standard Cover which obliges an insurer to pay if you make a claim for certain specified events outlined and for minimum amounts, as set out in the Regulations.
Standard Cover does not apply where before entering into the contract you knew or a reasonable person in the circumstances would be expected to have known that the policy cover provided: (a) would be for less than the Standard Cover minimum amount; or (b) did not cover a Standard Cover event.
For detailed information on Standard Cover you can visit the Federal Register of Legislation website https://www.legislation.gov.au/Details/F2017L01658 and refer to Part 3 – The Contract, Division 1 – Standard cover.