Your duty to take reasonable care
When you apply for or change your insurance cover, you need to take care when answering questions. If you do not take reasonable care when answering questions for the insurer, it may mean that you can’t claim on your cover. More information about this duty is set out below.
The duty to take reasonable care
When you apply for insurance, you're treated as if you are applying for cover under an individual consumer insurance contract.
A person who applies for cover under a consumer insurance contract has a legal duty to take reasonable care not to make a misrepresentation to the insurer before the contract of insurance is entered into.
A misrepresentation is:
- a false answer
- an answer that is only partially true
- an answer which does not fairly reflect the truth.
This duty also applies when extending or making changes to existing insurance, and reinstating insurance.
If you don't meet your duty
If you don't meet your legal duty, this can have serious impacts on your insurance. Under the Insurance Contracts Act 1984 (Cth) there are several different remedies that may be available to the insurer. They are intended to put the insurer in the position it would have been, if the duty had been met.
For example, the insurer may:
- avoid the cover (treat it as if it never existed)
- vary the amount of the cover
- vary the terms of the cover, such as adding an exclusion.
Whether the insurer can exercise one of these remedies depends on several factors, including:
- whether reasonable care was taken not to make a misrepresentation (this depends on all of the relevant circumstances)
- what the insurer would have done if the duty had been met – for example, whether it would have offered cover, and if so, on what terms
- whether the misrepresentation was fraudulent
- and in some cases, how long it has been since the cover started.
Before any of these remedies are exercised, the insurer will explain the reasons for its decision, how to respond and provide further information, and what you can do if you disagree.
Guidance for answering questions in your applications
You're responsible for the information provided to the insurer. When answering questions:
- Think carefully about each question before you answer. If you're unsure of the meaning of any question, please ask us before you respond.
- Answer every question.
- Answer truthfully, accurately and completely. If you're unsure about whether or not you should include information, please include it.
- Review your application carefully before it's submitted. If someone else helped prepare your application (for example, your adviser), please check every answer (and if necessary, make any corrections) before the application is submitted.
Please note that there may be circumstances where the insurer later investigates whether the information given to it was true. For example, when a claim is made.
Changes before your cover starts
Before your cover starts, the insurer may ask you whether the information that has been given as part of your application for insurance remains accurate or whether there has been a change to any of your circumstances.
As any changes that occur between when you complete your application and when your cover starts might require further assessment or investigation, it could save time if you let us or the insurer know about any changes when they happen.
If you need help
It’s important that you understand your obligations and the questions that are being asked. Please contact us for help if you have difficulty understanding the process of obtaining insurance or answering any questions.
You can call us on 1800 640 886 (8am to 8pm AEST/AEDT weekdays) or email us at enq@mediasuper.com.au.
Please also let us know if you’re having difficulty due to a disability, understanding English or for any other reason – we’re here to help and can provide additional support.
Disclaimer
Insurance is issued under a group policy with our insurer TAL Life Limited ABN 70 050 109 450 AFSL 237848.
