FAILURE TO COMPLY
The potential consequences of non-compliance with the Insurance Act are
significant. Insurers will be able to use an insured's inability to prove the
right information was originally provided as a secondary line of defence
against a claim.
In addition:
• For non-deliberate or non-reckless breaches of disclosure
requirements an insurer may initiate a 'proportional remedy',
including cancelling the agreement and repaying premiums,
imposing new terms or charging a higher premium from inception.
• For reckless, deliberate or negligent non-disclosure the insurer may
impose an 'avoidance' remedy, including cancelling the contract,
avoiding any claims and retaining any premiums paid.
TECHNOLOGY DELIVERS THE ROBUST AUDIT TRAIL THAT
UNDERPINS COMPLIANCE.
