Insurance Contracts Act 1984 (Cth)

Insurance Contracts Act 1984

No. 80, 1984

Compilation No. 32

Compilation date: 1 March 2024

Includes amendments: Act No. 76, 2023

Registered: 1 March 2024

About this compilation

This compilation

This is a compilation of the Insurance Contracts Act 1984 that shows the text of the law as amended and in force on 1 March 2024 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents Part I—Preliminary 1 Short title 2 Commencement 3 Repeals 4 Previous contracts 5 Crown to be bound 6 Extension to external Territories 7 Effect of Act on other laws 8 Application of Act 9 Exceptions to application of Act 9A Exclusion of pleasure craft from the Marine Insurance Act 1909 10 Contracts of insurance 11 Interpretation 11AA Application of the Criminal Code 11AB Consumer insurance contracts Part IA—Administration 11AAA Definition 11A ASIC responsible for general administration of Act 11B Powers of the ASIC 11C Supervisory powers—ASIC may obtain insurance documents 11D Supervisory powers—ASIC may review administrative arrangements etc. 11DA Supervisory powers—liability of directors, employees and agents of insurers 11E Examination of documents by ASIC not to imply compliance with relevant legislation 11F ASIC's power to intervene in proceedings Part II—The duty of the utmost good faith 12 This Part not to be read down 13 The duty of the utmost good faith 14 Parties not to rely on provisions except in the utmost good faith 14A Powers of ASIC—insurer's failure to comply with the duty of the utmost good faith in relation to handling or settlement of claims 15 Certain other laws not to apply Part III—Insurable interests Division 1—General insurance 16 Insurable interest not required 17 Legal or equitable interest not required at time of loss Division 2—Other contracts of insurance 18 Insurable interest not required Division 3—Naming of persons benefited 20 Persons benefited need not be named Part IV—Disclosures and misrepresentations Division 1A—Consumer insurance contracts: insured's duty to take reasonable care not to make a misrepresentation 20A Application of this Division 20B The insured's duty to take reasonable care not to make a misrepresentation 20C Warranties of existing facts to be representations Division 1—Other contracts: insured's duty of disclosure 20E Application of this Division 21 The insured's duty of disclosure 22 Insurer to inform of duty of disclosure Division 2—Other contracts: misrepresentations by insured 23A Application of this Division 23 Ambiguous questions 24 Warranties of existing facts to be representations 25 Misrepresentation by life insured 26 Certain statements not misrepresentations 27 Failure to answer questions Division 3—Remedies for relevant failures 27AA Meaning of relevant failure 27A Certain contracts of life insurance may be treated as if they comprised 2 or more separate contracts of life insurance 28 General insurance 29 Life insurance 30 Misstatements of age 31 Court may disregard avoidance in certain circumstances 32 Relevant failure by life insured covered under group life contract 32A Relevant failure by holder of RSA 33 No other remedies Division 4—Key Facts Sheets 33A Application of this Division 33B What is a Key Facts Sheet? 33C Insurer's obligation to provide Key Facts Sheet 33D Provision of Key Facts Sheet does not constitute clearly informing Part V—The contract Division 1—Standard cover 34 Interpretation 35 Notification of certain provisions 36 Interpretation of regulations 37 Notification of unusual terms Division 1A—Definition of flood 37A Application of this Division 37B Meaning of flood in prescribed contracts etc. 37C Insurer must clearly inform insured whether prescribed contract provides insurance cover in respect of flood 37D Circumstances in which prescribed contract is taken to provide insurance cover etc. in respect of flood 37E Division not to affect provision of insurance cover for certain events Division 2—General provisions relating to insurance contracts 38 Interim contracts of insurance 39 Instalment contracts of general insurance 40 Certain contracts of liability insurance 41 Contracts of liability insurance—consent of insurer required for settlement etc. of claim 42 Maximum cover for premium 43 Arbitration provisions 44 Average provisions 45 "Other insurance" provisions 46 Pre‑existing defect or imperfection 47 Pre‑existing sickness or disability 48 Contracts of general insurance—entitlements of third party beneficiaries 48AA Life policy in connection with RSA for the benefit of third party beneficiary 48A Life policy for the benefit of third party beneficiary 49 Where sum insured exceeds value of insured's interest 50 Sale of insured property 51 Claims against insurer in respect of liability of insured or third party beneficiary 52 "Contracting out" prohibited 53 Variation of contracts of insurance Division 3—Remedies 54 Insurer may not refuse to pay claims in certain circumstances 55 No other remedies 55A Representative actions by the ASIC Part VI—Claims 56 Fraudulent claims 57 Interest on claims Part VII—Expiration, renewal and cancellation 58 Insurer to notify of expiration of contracts of general insurance 59 Cancellation procedure 59A Cancellation of contracts of life insurance 60 Cancellation of contracts of general insurance 61 Insurers in liquidation 62 Cancellation of instalment contracts of general insurance 63 Cancellations of contracts of insurance void Part VIII—Subrogation 64 Application to third party beneficiaries 65 Subrogation to rights against family etc. 66 Subrogation to rights against employees 67 Rights with respect to money recovered under subrogation etc. 68 Contracts affecting rights of subrogation Part IX—Information, notices and reasons 69 Giving of information to insureds 70 Notices to be given to life insureds in certain cases 71 Agency 72 Content and other requirements for notices etc. to be given in writing 72A Method for giving written notices or documents 74 Policy documents to be supplied on request 75 Reasons for cancellation etc. to be given Part IXA—Enforcement Division 1—Civil penalty provisions Subdivision A—Obtaining a pecuniary penalty order 75A Declaration of contravention of civil penalty provision 75B Pecuniary penalty orders 75C Maximum pecuniary penalty 75D Pecuniary penalty applicable 75E Civil enforcement of pecuniary penalty orders 75F Meaning of benefit derived and detriment avoided because of a contravention of a civil penalty provision 75G Conduct contravening more than one civil penalty provision 75H Multiple contraventions 75J Proceedings may be heard together 75K Civil evidence and procedure rules for pecuniary penalty orders Subdivision B—Civil proceedings and criminal proceedings 75L Civil proceedings after criminal proceedings 75M Criminal proceedings during civil proceedings 75N Criminal proceedings after civil proceedings 75P Evidence given in civil proceedings not admissible in criminal proceedings Subdivision C—Miscellaneous 75Q Attempt and involvement in contravention treated in same way as actual contravention 75R Continuing contraventions of civil penalty provisions 75S State of mind 75T Mistake of fact 75U Exceptions etc. to civil penalty provisions—burden of proof 75V Civil penalty provisions contravened by employees, agents or officers Division 2—Infringement notices 75W When an infringement notice may be given 75X Provisions subject to an infringement notice 75Y Matters to be included in an infringement notice 75Z Payment period 75ZA Extension of time to pay amount 75ZB Payment by instalments 75ZC Withdrawal of an infringement notice 75ZD Effect of payment of amount 75ZE Effect of this Division Part X—Miscellaneous 76 Contribution between insurers 78 Regulations Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history An Act to reform and modernise the law relating to certain contracts of insurance so that a fair balance is struck between the interests of insurers, insureds and other members of the public and so that the provisions included in such contracts, and the practices of insurers in relation to such contracts, operate fairly, and for related purposes