01 / The meaning
What it means.
Australian insurance law distinguishes consumer insurance contracts from other contracts, so one blanket description of a duty to disclose is unsafe. Commercial insurance questions can address activities, claims, premises, contracts and financial circumstances. Read the duty notice supplied with the proposal and ask how it applies. An unanswered question should not be treated as an invitation to guess.
Non-disclosure differs from an inaccurate answer, although the same exchange may raise both issues. The legal consequences are not identical in every case, and an omission does not automatically mean every claim is refused. If information was missed, explain it promptly to the broker or insurer, record when it became known and retain any revised terms or written response.
02 / Put it in context
A practical example.
Hypothetical example: A manufacturer realises that a previous small product complaint was omitted from an insurance proposal. The owner supplies the complaint correspondence and explains the timing. The insurer must consider the circumstances under the applicable rules; the glossary cannot predict the effect on cover.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Read the duty notice and determine which contract rules apply.
- Check answers with staff responsible for claims and operations.
- Document omitted information, corrections and the insurer’s response.
04 / Start a useful conversation
A question for your broker.
What information does the applicable duty notice require us to provide?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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