Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INSURANCE CONTRACTS ACT 1984 - SECT 28

General insurance

             (1)  This section applies where the person who became the insured under a contract of general insurance upon the contract being entered into:

                     (a)  failed to comply with the duty of disclosure; or

                     (b)  made a misrepresentation to the insurer before the contract was entered into;

but does not apply where the insurer would have entered into the contract, for the same premium and on the same terms and conditions, even if the insured had not failed to comply with the duty of disclosure or had not made the misrepresentation before the contract was entered into.

             (2)  If the failure was fraudulent or the misrepresentation was made fraudulently, the insurer may avoid the contract.

             (3)  If the insurer is not entitled to avoid the contract or, being entitled to avoid the contract (whether under subsection (2) or otherwise) has not done so, the liability of the insurer in respect of a claim is reduced to the amount that would place the insurer in a position in which the insurer would have been if the failure had not occurred or the misrepresentation had not been made.



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback