IMPORTANT NOTICES

1.            THE DUTY TO TAKE REASONABLE CARE NOT TO MAKE A MISREPRESENTATION

For the purposes of the new duty, it is noted that it specifically relates to consumer insurance contracts* that are ‘obtained wholly or predominantly for the personal, domestic or household purposes of the insured’, unless a policy is nominated to be a consumer insurance contract by the insurer.

*Consumer Insurance Contracts are Motor vehicle; Home building; Home contents; Sickness and accident; Travel; Personal and Domestic Property Insurance Products and Consumer Credit.

THE DUTY TO TAKE REASONABLE CARE NOT TO MAKE A MISREPRESENTATION - (CONSUMER INSURANCE CONTRACTS ONLY) – NEW BUSINESS AND VARIATIONS

You have a duty under the Insurance Contracts Act 1984 (ICA) to take reasonable care not to make a misrepresentation to the insurer (your duty). Your duty applies only in respect of a policy that is a consumer insurance contract, which is a term defined in the ICA.

Your duty applies before you enter into the policy, and also before you renew, extend, vary, or reinstate the policy.

Before you do any of these things, you may be required to answer questions and the insurer will use the answers you provide in deciding whether to insure you, and anyone else to be insured under the policy, and on what terms. To ensure you meet your duty, your answers to the questions must be truthful, accurate and complete.

If you fail to meet your duty, the insurer may be able to cancel your contract, or reduce the amount it will pay if you make a claim, or both.

If your failure is fraudulent, the insurer may be able to refuse to pay a claim and treat the contract as if it never existed.

The duty to take reasonable care not to make a misrepresentation - (consumer insurance contracts only) – Renewals

Before you renew or vary your policy, you have a duty under the Insurance Contracts Act 1984 (ICA) to take reasonable care not to make a misrepresentation to the insurer (your duty).

Your duty applies only in respect of your policy that is a consumer insurance contract, which is a term defined in the ICA.

This notice includes information you have previously told us that is relevant to your policy, which we passed on to the insurer. The insurer requires you to contact us to tell us if this information is incorrect, or if it has changed. If you do not tell us about a change to something you have previously told us, the insurer will take this to mean that there is no change.

To ensure you meet your duty, when you contact us to advise of any information that is incorrect or has changed, the updated information you give us must be truthful, accurate and complete.

If you fail to meet your duty, the insurer may be able to cancel your contract or reduce the amount it will pay if you make a claim, or both.

If your failure is fraudulent, the insurer may be able to refuse to pay a claim and treat the contract as if it never existed.

YOUR DUTY OF DISCLOSURE (non-Consumer Insurance Contracts only)

Before you enter into an insurance contract, you have a duty to tell the insurer anything that you know, or could reasonably be expected to know, that may affect the insurer’s decision to insure you and on what terms.

You have this duty until the insurer agrees to insure you.

You have the same duty before you renew, extend, vary, or reinstate an insurance contract.

You do not need to tell the insurer anything that:

•             reduces the risk they insure you for; or

•             is common knowledge; or

•             the insurer knows, or should know; or

•             the insurer waives your duty to tell them about

If you do not tell the insurer anything you are required to, they may cancel your contract, or reduce the amount they will pay you if you make a claim, or both. If your failure to tell the insurer is fraudulent, they may refuse to pay a claim and treat the contract as if it never existed.

2.            THE AVERAGE CLAUSE - UNDER INSURANCE

Fire and Business Interruption Policies, Industrial Special Risk covers, Machinery / Electronic Breakdown, Special Contingency and Contractors Risk usually contain an Average Clause. This means that you must insure for the full value and this of course varies with the type of cover you take - Market Value, Indemnity or Replacement. If you are under insured your claim may be reduced in proportion to the amount of under insurance.

3.            THE INTEREST OF OTHER PARTIES

Policy conditions exclude the interest of other persons or organisations not named (eg. Mortgagees, Lessors, Principals etc) unless their interest is noted on the Policy.

4.            LIABILITY INSURANCE

Most liability Policies do not provide indemnity in respect of events that occurred prior to the commencement of the contract.

5.            SUBROGATION AGREEMENTS/HOLD HARMLESS AGREEMENTS

Where another person is liable to compensate you for any loss or damage otherwise covered by the policy, but you have agreed with that person either before or after the loss or damage occurred that you would not seek to recover any monies from that person, you will not be covered. These "hold harmless" clauses are often found in leases, in maintenance or supply contracts from burglar alarm or fire protection Installers and in repair contracts. This notification requirement applies to all property covers and also to Public Liability insurance. It also has a special connotation in Products Liability where you must not (without the Insurers agreement) hold a supplier harmless.

6.            UTMOST GOOD FAITH

Insurance contracts are subject to the doctrine of utmost good faith and this is part of the Law. Utmost good faith must be strictly adhered to by both parties and if you fail to do so you may prejudice any claim.

7.            MOTOR INSURANCE

Your Duty of Disclosure requires you to inform us of any infringements and accidents you may have sustained within the past twelve (12) months.

8.            REMUNERATION

Driessen Insurance Brokers may receive a financial benefit from a third party in respect of Insurance contracts arranged on your behalf. Driessen Insurance Brokers may reserve the right to retain the commission/brokerage and fee on all policies arranged in the event of cancellation.

9.            DISPUTES FACILITY

Clients who are not fully satisfied with our services should contact our customer relations/complaints officer. Driessen Insurance Brokers subscribe to the Financial Ombudsmen Service (FOS), a free customer service, and the General Insurance Brokers Code of Practice. Further information is available from our office.

10.          WORKERS COMPENSATION

Please ensure that the sum insured above is adequate and meets your requirements. It is compulsory for employers to have Workers Compensation Insurance. If you are not insured please contact us immediately to arrange cover.

It is our duty as brokers to give you sound professional advice. But that advise can only be sound and valid if we are kept properly informed of changes to your business or circumstances.

11.          PRIVACY POLICY

You can view our privacy policy here.