Before you enter into a contract of insurance, 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, that is relevant to the insurer’s decision on whether or not to accept the risk of the insurance. You have the same duty to disclose those matters to the insurer before you renew, extend, vary or reinstate your insurance.

Your duty does not require disclosure of matters that:

  • Diminish the risk to be undertaken by the insurer.
  • Are of common knowledge.
  • The insurers know, or, in the ordinary course of their business, ought to know.
  • The insurer waives compliance with your duty.


If you fail to comply with your duty of disclosure, the insurer may be entitled to reduce their liability under the contract in relation to a claim or may cancel the contract. If your non-disclosure is fraudulent, they can also void the contract from its beginning.

Reasonable Precautions

You must take all reasonable precautions for the maintenance and safety of the insured property. Your insurer will not be liable for any loss, damage, injury or liability arising from a deliberate or fraudulent act committed by you or on your behalf.

Utmost Good Faith

Insurance contracts are subject to the doctrine of utmost good faith and this is part of the law.  Both parties must strictly adhere to utmost good faith and failure to do so may prejudice any claim/s made.

Disclaimer“This material contains general information only and may not suit your particular circumstances. To decide if a policy is right for you please carefully read the relevant Product Disclosure Statement (PDS) and/or Policy wording. While we have exercised due care and skill in preparing this information, Optimum Insurance Services (Optimum) does not accept any legal responsibility or liability for negligence or otherwise to you or anyone else who seeks to rely on this information. This includes, without limitation, loss arising from a possible failure of the information to comply with statutory or regulatory requirements or the failure of the information to identify other terms and conditions beyond those considered in this document. You should obtain advice to ensure that your policy provides adequate cover for your circumstances.

“Optimum Insurance Services Pty Ltd is a Corporate Authorised Representative of Insurance Advisernet Australia Pty Ltd (Car No. 291220), Australian Financial Services Licence No 240549, ABN 15 003 886 687.”

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Optimum Insurance Services Pty Ltd is a Corporate Authorised Representative (No. 291220) of Insurance Advisernet Australia Pty Ltd (AFSL No. 240549).


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