Your Insurance Obligations

Upon entering into an insurance contract for the first time with us, you will be required to answer specific questions on the insurance proposal form. You must answer all those questions truthfully and accurately to comply with your duty of disclosure. On renewal, you will be expected to disclose to your insurer every matter that is in your knowledge, or that you would reasonably be expected to know about, that might effect the insurer’s decision of whether to accept the risk, and if so, on what terms.

However, you are not required to disclose anything that:

• Diminishes the risk to be undertaken by the Insurer;
• Is categorized under common knowledge;
• Your Insurer knows, or in the ordinary course of its business, is ought to know about; or
• Your Insurer has waived from your obligation to disclose.

If you do not comply with your duty of disclosure, the insurer is perhaps entitled to reduce their liability in respect of a claim. Or in any such case, they may also be entitled to cancel your contract of insurance.

If the non-disclosure was fraudulent, the insurer may also be entitled to avoid (or cancel) the contract of insurance right from the beginning. This would in turn have the same effect as never being insured at the first place.

One important matter that has to be disclosed beforehand is the history of any losses suffered by the person seeking insurance, or any closely associated person/entity. As you are the one responsible for the correspondence to any required disclosures, we highly suggest that you to maintain an up to date record of all such losses and claims.

If you have any questions or queries about what kind of information needs to be disclosed, or if you want any additional assistance, please contact us.