Part IX · Insurance Contracts Act 1984

Contents

Part IX · Information, notices and reasons

69Giving of information to insureds#

(1)Where:

(a)by reason of a provision of this Act, information in relation to a contract of insurance is to be or may be given in writing to a person before the contract is entered into; and

(b)it is not reasonably practicable for the information to be so given in writing but it is reasonably practicable for it to be so given orally;

the provision shall be deemed to have been complied with if:

(c)the information is so given orally; and

(d)the information is also given in writing within 14 days after the day on which the contract was entered into.

(1A)If:

(a)an insured may, because of subsection (1), be informed orally of the matters referred to in subsection 22(1); and

(b)the regulations prescribe a form of words to be used in giving the information orally;

the information may be given using the prescribed form of words.

(2)Where, by reason of a provision of this Act:

(a)information in relation to a contract of insurance is to be or may be given in writing to a person before the contract is entered into; and

(b)it was not reasonably practicable for the information to be so given orally or in writing;

the provision shall be deemed to have been complied with, and the information shall be deemed to have been given, if the information is given in writing within 14 days after the day on which the contract was entered into.

(3)Where information as mentioned in subsection (1) or (2) is given in writing after the contract was entered into, but at a time later than 14 days after the day on which the contract was entered into:

(a)the rights of a person other than the insurer in respect of a loss that occurred during the period commencing at the expiration of 14 days after the day on which the contract was entered into and ending at the time when the information was so given are the same as though the information had not been given; and

(b)the rights of a person other than the insurer in respect of a loss that occurred at any other time are the same as though the information had been given in writing before the contract was entered into.

(4)Where:

(a)by reason of this Act, information in relation to a contract of insurance is to be or may be given in writing by the insurer to a person before, or at the time when, the contract is entered into;

(b)it is reasonably practicable for the information to be so given; and

(c)the information is not so given, but is given in writing at a later time;

the rights of a person other than the insurer in respect of a loss that occurred after the contract was entered into but before the information was given are the same as though the information had not been given.

70Notices to be given to life insureds in certain cases#

Where, by this Act, provision is made with respect to the giving of a notice or other document or information to an insured, then, in the case of an individual superannuation contract, a reference in the provision to the insured shall be read as a reference to the life insured.

71Agency#

(1)A provision of this Act (other than subsection 58(2)) for or with respect to the giving of a notice or other document or information to an insured before a contract of insurance is entered into does not apply where the contract was arranged by an insurance broker, not being an insurance broker acting under a binder, as agent of the insured.

(2)Where:

(a)a person who is not an insurance intermediary acted as agent of an insured in arranging a contract of insurance; and

(b)the insurer gave that person a notice or other document or information as mentioned in this Act;

the insurer shall be deemed to have given the notice, other document or information to the insured.

(3)An insurance intermediary, other than an insurance broker who is not acting under a binder, shall, in relation to the giving of a notice or other document or information that, by this Act, is required or permitted to be given, be deemed to be the agent of the insurer and not of the insured.

72Content and other requirements for notices etc. to be given in writing#

A reference in this Act to the giving of a notice or other document or information to a person, in writing, is a reference to giving the person a notice or other document or information in writing that complies with the requirements (if any) prescribed as to:

(a)the content and legibility of the notice, other document or information; and

(b)the material that may accompany the notice, other document or information.

72AMethod for giving written notices or documents#

A notice or other document that is required or permitted by this Act to be given to a person in writing may be given:

(a)to a body corporate in any way in which documents may be served on the body corporate; or

(b)to a natural person:

(i)personally; or

(ii)by post to that person at the person’s last-known address.

Note: A notice or other document may also be given to a person by electronic communication in accordance with the Electronic Transactions Act 1999 and any regulations made under that Act.

74Policy documents to be supplied on request#

(1)Where the insured under a contract of insurance so requests in writing given to the insurer, the insurer shall give to the insured a statement in writing that sets out all the provisions of the contract.

Penalty: 300 penalty units.

(2)An insurer need not comply with the requirements of subsection (1) if the insurer has already given to the insured such a statement, whether as required by this Act or otherwise.

Note: A defendant bears an evidential burden in relation to the matters in subsection (2), see subsection 13.3(3) of the Criminal Code.

75Reasons for cancellation etc. to be given#

(1)Where an insurer:

(a)does not accept an offer to enter into a contract of insurance;

(b)cancels a contract of insurance;

(c)indicates to the insured that the insurer does not propose to renew the insurance cover provided under a contract of insurance; or

(d)by reason of some special risk relating to the insured or to the subject-matter of the contract, offers insurance cover to the insured on terms that are less advantageous to the insured than the terms that the insurer would otherwise offer;

the insurer shall, if the insured so requests in writing given to the insurer, give to the insured a statement in writing setting out the insurer’s reasons for not accepting the offer, for cancelling the contract, for not renewing the insurance cover or for offering insurance cover on less advantageous terms, as the case may be.

Penalty: 300 penalty units.

(2)In relation to a contract of general insurance, if the state of health of the insured was the reason, or one of the reasons, that the insurer did not accept the offer, cancelled the contract, did not renew the insurance cover or offered insurance cover on less advantageous terms, as the case may be, the insurer may require the insured to inform the insurer in writing of the name of a legally qualified medical practitioner to whom the statement may be given on behalf of the insured and, where the statement is given to the medical practitioner so nominated, the insurer shall be taken to have complied with subsection (1) in relation to the request.

(3)In relation to a contract of life insurance where the insured is not the life insured, subsection (1) does not apply if the state of health of the life insured was the only reason that the insurer did not accept the offer, cancelled the contract, did not renew the insurance cover or offered insurance cover on less advantageous terms, as the case may be.

Note: A defendant bears an evidential burden in relation to the matters in subsection (3), see subsection 13.3(3) of the Criminal Code.

(4)In relation to a contract of life insurance where the insured is not the life insured, a statement given under subsection (1) shall not include any reference to the state of health of the life insured.

(5)Where an insurer:

(a)does not accept an offer to enter into a contract of life insurance;

(b)cancels such a contract;

(c)indicates to the insured that the insurer does not propose to renew the insurance cover provided under such a contract; or

(d)by reason of some special risk relating to the life insured, offers life insurance cover to the insured on terms that are less advantageous to the insured than the terms that the insurer would otherwise offer;

the insurer shall, if the life insured so requests in writing given to the insurer, give to the life insured a statement in writing setting out the insurer’s reasons for not accepting the offer, for cancelling the contract, for not renewing the insurance cover or for offering life insurance cover on less advantageous terms, as the case may be, being reasons that relate to the state of health of the life insured.

Penalty: 300 penalty units.

(6)The insurer may require the life insured to inform the insurer in writing of the name of a legally qualified medical practitioner to whom the statement may be given on behalf of the life insured and, where the statement is given to the medical practitioner so nominated, the insurer shall be taken to have complied with subsection (5) in relation to the request.

(7)It is a defence to a prosecution for an offence arising under this section if the insurer proves that compliance with this section would have unreasonably put at risk the interests of the insurer or of some other person.

Note: A defendant bears a legal burden in relation to a matter mentioned in subsection (7), see section 13.4 of the Criminal Code.

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