Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INSURANCE CONTRACTS ACT 1984 - SECT 13

The duty of the utmost good faith

             (1)  A contract of insurance is a contract based on the utmost good faith and there is implied in such a contract a provision requiring each party to it to act towards the other party, in respect of any matter arising under or in relation to it, with the utmost good faith.

             (2)  A failure by a party to a contract of insurance to comply with the provision implied in the contract by subsection (1) is a breach of the requirements of this Act.

          (2A)  An insurer under a contract of insurance contravenes this subsection if the insurer fails to comply with the provision implied in the contract by subsection (1).

Civil penalty:          5,000 penalty units.

             (3)  A reference in this section to a party to a contract of insurance includes a reference to a third party beneficiary under the contract.

             (4)  This section applies in relation to a third party beneficiary under a contract of insurance only after the contract is entered into.



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback