Fillable Professional Indemnity (Page 7 of 7) in pdf

AN IMPORTANT NOTICE TO THE APPLICANT

‘CLAIMS MADE’ CONTRACTS OF INSURANCE

PLEASE READ AND RETAIN IN YOUR FILE

Your duty however does not require disclosure of matter -

that diminishes the risk to be undertaken by us;

The proposed insurance is issued on a ‘claims made’ basis.

that is of common knowledge;

This means that the policy responds to:

that we know or, in the ordinary course of our business,

1. claims first made against the insured during the policy period

ought to know;

and notified to CGU Professional Risks during that policy period,

providing that the insured was not aware, at any time prior to

as to which compliance with your duty is waived by us.

the policy inception, of circumstances which would have alerted

You should note that your duty continues after the proposal form

a reasonable person in the insured’s position that a claim may

has been completed until the policy is entered into.

be made against the insured; and

2. ‘claims circumstances’ notified pursuant to Section 40 (3)

Non-disclosure

of the Insurance Contracts Act which states:

‘where the insured gave notice in writing to the insurer of facts

If you fail to comply with your duty of disclosure, we may be entitled

that might give rise to a claim against the insured as soon as

to reduce our liability under the policy in respect of a claim or may

was reasonably practicable after the insured became aware

cancel the policy. If your non-disclosure is fraudulent, we may

of those facts but before the insurance cover provided by the

also have the option of avoiding the contract from its beginning.

contract expired, the insurer is not relieved of liability under the

It is therefore vital that you enquire of all entities comprising the

contract in respect of the claim, when made, by reason only that

insured, including senior staff, before completing the proposal form

it was made after the expiration of the period of insurance cover

and before you sign any declaration confirming no change in the

provided by the contract’.

information disclosed.

After policy expiry, no new claims can be made on the expired

policy even though the event giving rise to the claim may have

Retroactive Liability

occurred during the policy period.

The proposed insurance may be limited by a retroactive date either

If during the policy period you become aware of circumstances

stated in the schedule or endorsed onto the policy. Where the

which a reasonable person in your position would consider may

retroactive cover provided by the proposed policy is subject to such

give rise to a claim, and which you fail to notify to us during the

a date, then the policy does not cover any claim arising from actual

policy period, we may not cover you under a subsequent policy

or alleged act, error, omission or conduct occurring prior to such

for any claim which arises from these circumstances.

retroactive date.

When completing the proposal you are obliged to report and

Average Provision

provide full details of all circumstances of which you are aware

and which a reasonable person in your position would consider

One of the insuring provisions of the proposed insurance may

may give rise to a claim.

provide that where the amount required to dispose of a claim

It is important that you make proper disclosure (see Duty of

exceeds the limit of the sum insured in the policy then CGU

Disclosure, below) so that your cover under any new policy

Professional Risks shall be liable only for a proportion of the total

with us is not compromised.

costs and expenses. This shall be the same proportion of the total

expenses as the policy limit bears to the total amount required to

Pursuant to the Insurance Contracts Act your duty to disclose

dispose of the claim.

all relevant information is set out below.

Surrender of Waiver of any Right of Contribution

DUTY OF DISCLOSURE

or Indemnity

If another person or company is liable to compensate you or

Before entering into a contract of general insurance, you have a

hold you harmless for part or all of any loss or damage otherwise

duty, under the Insurance Contracts Act, to disclose to us every

covered by our policy, but you agree with that person or company

matter that you are aware of, or could reasonably be expected

(either before or after the inception of our policy) that you would not

to be aware of, that is relevant to our decision about insuring you

seek to recover any loss or damage from them, we will not cover

and if so, on what terms. You have the same duty to disclose

you for this loss or damage.

these matters to us before you renew, extend, vary or reinstate

a contract of general insurance.

Enquiries

13 24 81

Mailing address

Claims

13 24 80

GPO Box 9902 in your capital city

Sydney

Melbourne

Brisbane

Perth

Adelaide

388 George St

181 William St

189 Grey St

46 Colin St

80 Flinders St

Sydney

Melbourne

South Bank

West Perth

Adelaide

NSW 2000

VIC 3000

QLD 4101

WA 6005

SA 5000

CGU Professional Risks

.AU/PROFESSIONAL RISKS

CGU Insurance Limited

ABN 27 004 478 371

Professional Indemnity Page 7

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