Duty of Disclosure
The full bench of the Federal Court has recently considered the circumstances in which an insurer is entitled to reduce its liability to indemnify an insured to nil as a consequence of the insured’s non disclosure and misrepresentation. The decision underlines the importance of disclosure of matters relevant to an insurer’s assessment of the risk the subject of the proposed cover but also the importance of an insurer having clear guidelines so it can establish that it would not have entered into the contract if the non disclosure have not been made.
Significant cases, legislation or articles referred to
- Sagacious Legal Pty Limited v Wesfarmers General Insurance Limited  FCAFC53
- Segacious Legal Pty Limited v Wesfarmers General Insurance Limited (4)  FCA482
- Insurance Contracts Act 1984 (Cth)
- Dawes Underwriting Australia Pty Ltd v Roth  NSWCA 152