Important Notices in this Section outline your rights & obligations in entering into insurance contracts. It is essential that you read these notices carefully
and advise your Account Manager immediately if you make a further ‘declaration’ or have questions about general or policy specific important notices.
Insurance Contracts Act 1984
The law relating to insurance was amended by the Insurance Contracts Act 1984.
By virtue of this legislation we are obliged to advise you of certain duties and limitations which apply to the policy(ies). The following statements pertaining
to disclosure and non-disclosure are in the form as prescribed in the Regulations insofar as they concern Contracts of General Insurance.
The words "before you enter into a contract of insurance" hereunder include:
- The initial contract.
- An interim contract of insurance such as a placing slip or cover note.
- The making of an agreement by the parties to a contract of insurance to renew, extend or vary the contract.
- The reinstatement of a previous insurance.
Duty of Disclosure
Before you enter into a contract of general insurance with an insurer, you have a duty, under the Insurance Contracts Act 1984, to disclose to the insurer
every matter that you know, or could reasonably be expected to know, is relevant to the insurer's decision whether to accept the risk of insurance
and, if so, on what terms.
You have the same duty to disclose those matters to the insurer before you renew, extend, vary or reinstate a contract of general insurance.
Your duty however does not require disclosure of matter:
- that diminishes the risk to be undertaken by the insurer;
- that is of common knowledge;
- that your insurer knows or, in the ordinary course of his business ought to know;
- As to which compliance with your duty is waived by the insurer.
If you fail to comply with your duty of disclosure, the insurer may be entitled to reduce his liability under the contract in respect of a claim or may
cancel the contract. If your non-disclosure is fraudulent, the insurer may also have the option of avoiding the contract from its beginning.
Utmost Good Faith
Every insurance contract is subject to the doctrine of utmost good faith, which requires that the parties to the contract should act towards each other
with the utmost good faith. Failure to do so on your part may prejudice any claim or the continuation of cover provided by your insurer(s).
Change of Risk or Circumstances
It is vital that you should advise us of any departure from your "normal" form of business (i.e. that which has already been conveyed to your insurers).
For example, acquisitions, changes in occupation or location, new products or new overseas activities. In order to ensure proper protection, please
consult with us if you are in any doubt as to whether your insurer should or should not be told of certain changes.
You may prejudice your rights with regard to a claim if, without prior agreement from your insurers, you enter into an agreement with a third party that
prevents the insurer from recovering the loss from that, or another party. Your policies contain provisions, which allow the insurer to recover their
liability from the responsible party. Any agreement you enter into that excludes or limits your rights to recover damages from another party in relation
to any loss, damage or destruction contravenes these provisions.
If you have any such agreements, we may be able to negotiate with your insurer to permit them and therefore we request you to advise us of their existence.
Examples of such agreements are the "hold harmless" clauses which are often found in lease agreements, maintenance and supply contracts pertaining
to the installation and maintenance of fire protection systems and burglar alarms and in storage contracts.
Claims Occurring Prior to Commencement
Your attention is drawn to the fact your policies may not provide indemnity in respect of events that occurred prior to the commencement of the contract.
Broker Acting as an Agent of Insured
By effecting this contract of insurance, GSA will be acting under an authority given to it by the insurer and GSA will be effecting the contract as an
agent of the insurer and not the insured.
Claims Made During The Period of Insurance
Your attention is drawn to the fact that these policies provide indemnity on a "claims made" basis, which means that claims first advised to you (or made
against you) and reported by you during the period of insurance are covered, irrespective of when the incident causing the claim occurred, subject
to any clauses relating to "retroactive date".
You should also note that, in terms of the provisions of Section 40(3) of the Insurance Contracts Act - 1984, where you give notice in writing to the Insurer
of facts that might give rise to a claim against you as soon as is reasonably practicable after you become aware of those facts (but before the insurance
cover provided by the contract expires) then the insurer is not relieved of liability under the contract in respect of the claim, when made, by reason
only that it is made after the expiration of the period of the insurance cover provided by the contract.
In order to ensure that any entitlement to indemnity under the policy is protected, you must therefore report all incidents that may give rise to a claim
against you to your insurer without delay after such incidents come to your attention and prior to the expiration of the policy period.
Not A Renewable Contract
These policies are not renewable contracts. If you wish to affect similar insurance beyond expiry of the current period of insurance, it will be necessary
for you to complete a new proposal form prior to the termination of the current policy so that terms of insurance and quotations can be developed.