Before you enter into an insurance contract, you have a duty to take reasonable care not to make a misrepresentation to us when answering questions that we will ask you and providing us with information.

Before you enter into, vary or extend an insurance contract, we will ask you questions that are relevant to our decision to insure you and on what terms.

You must take reasonable care not to make a misrepresentation to us when answering those questions. For example, it is important that you answer our questions fully and accurately, to the best of your knowledge.

If you do not take reasonable care not to make a misrepresentation to us, we may cancel your contract, or deny or reduce the amount we will pay you for a claim, in accordance with our rights at law.

If you make a misrepresentation to us which is fraudulent, we can:

  1. Treat your policy as if it never existed (i.e. avoid the contract), unless we would have entered into the contract for the same premium and on the same terms anyway; or
  2. If we are not entitled to avoid the contract or we decide not to avoid the contract, we can reduce the amount that we pay you for a claim so that we are put in the position we would have been in if you had not breached your duty to us, in accordance with our rights at law.