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| Important Notices |
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NOTICES APPLICABLE TO ALL CLIENTS
Your 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 the 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.
Non-Disclosure
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.
Our Remuneration
If a policy is cancelled before the expiry of the period of insurance, you may only be refunded the net return premium which we receive from the Insurer. You may not be refunded any part of the brokerage or fees we receive for arranging the cover.
Average or Co-Insurance
Some contracts of insurance contain an Average or Co-Insurance provision whereby you will be considered your own insurer for the difference between the sum insured at the time of loss and the specified percentage of the true value of the property lost or damaged, ie you will bear a rateable proportion of any loss in the event of under-insurance.
Preventing your Insurer from Right of Recovery
("Hold Harmless" and "Waiver of Subrogation" Clauses)
You may prejudice your rights in respect of a loss if without prior agreement from your Insurer, you make any agreement that will prevent the Insurer from recovering the loss from a third party.
These "hold harmless" clauses are often found in leases, maintenance, supply and tender contracts.
You should not sign any agreement which contains such a clause without reference to us.
Insurance Brokers Disputes Limited
Clients who are not fully satisfied with our services should contact our customer relations/complaints officer, Mr David Rogers on 6210 8888. Westminster also subscribe to the Insurance Brokers Disputes Limited, a free consumer service, and the General Insurance Brokers' Code of Practice. Further information is available from our office.
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 if you fail to do so you may prejudice any claim.
It is our duty as brokers to give you sound professional advice, but that advice can only be sound and valid if we are kept properly informed of changes to your business or circumstances.
Please contact us if you would like more information all the above matters.
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