Your Duty of Disclosure

Before you proceed with this Proposal Form and enter into a general insurance contract, it is crucial to understand your duty under the Insurance Contracts Act 1984 (Cth.). You are obligated to disclose to the Insurer any information that you know, or should reasonably know, is relevant to their decision in accepting the insurance risk and determining the terms.

This duty extends not only during initial contract establishment but also when renewing, extending, varying, or reinstating the insurance contract. It remains valid even after this form’s completion, up to the policy inception.

Exceptions to disclosure exist for matters that:

  • Decrease the risk for the Insurer.
  • Are of common knowledge.
  • The Insurer already knows or should know in its ordinary business operations.
  • Are waived by the insurer.


Failure to meet your duty of disclosure could result in the Insurer reducing their liability for a claim or cancelling the contract. Fraudulent non-disclosure might lead to the contract’s complete avoidance. Hence, it’s essential to conduct sufficient inquiries before completing this form and signing any declaration claiming no change in information.

Management Liability Insurance Coverage

This policy operates on a “Claims Made and Notified” basis, exclusively responding to:

  • Claims first made during the insurance period and notified within the same period. This applies if, prior to policy inception, there was no awareness of circumstances indicating a potential claim.
  • Claims made under the Insurance Contracts Act 1984 (Cth.), Section 40, Sub-section 3. This section states that if the Insured notifies the Insurer in writing about facts that may lead to a claim as soon as possible before the policy’s expiration, the Insurer remains liable for the claim even if made after the policy’s end.

Notably, the policy’s expiration generally bars new notifications, even if the claim-triggering event occurred during the policy term. You won’t be indemnified under a new policy for claims linked to circumstances known before the policy inception. Therefore, complete this form thoroughly, disclosing all known circumstances that could prompt a claim.

Surrender or Waiver of Right

If you’ve agreed not to seek recovery from a third party for losses covered by this policy, you won’t be covered for those losses.

Impact of Contract on Subrogation Rights

Signing an agreement limiting the insurer’s liability due to your agreement not to recover damages from a third party could jeopardise your indemnity under this proposed contract.

Completing the Proposal Form

  • Answer all questions transparently, providing full details.
  • Disclose all requested information and any relevant additional facts.
  • A relevant fact influences the insurer’s risk assessment.
  • Use additional sheets if space on the form is insufficient.
  • The Proposal Form must be completed, signed, and dated by an authorised person of legal capacity, representing the Applicant seeking management liability insurance.