Commonwealth Consolidated Acts

INSURANCE CONTRACTS ACT 1984 - SECT 35

  (1)   Where:

  (a)   a claim is made under a prescribed contract; and

  (b)   the event the happening of which gave rise to the claim is a prescribed event in relation to the contract;

the insurer may not refuse to pay an amount equal to the minimum amount in relation to the claim by reason only that the effect of the contract, but for this subsection, would be that the event the happening of which gave rise to the claim was an event in respect of which:

  (c)   the amount of the insurance cover provided by the contract was less than the minimum amount; or

  (d)   insurance cover was not provided by the contract.

  (2)   Subsection   (1) does not have effect where the insurer proves that, before the contract was entered into, the insurer clearly informed the insured in writing (whether by providing the insured with a document containing the provisions, or the relevant provisions, of the proposed contract or otherwise) or the insured knew, or a reasonable person in the circumstances could be expected to have known:

  (a)   where the effect of the contract, but for subsection   (1), would be that the liability of the insurer in respect of a claim arising upon the happening of the event would be less than the minimum amount--what the extent of the insurer's liability under the contract in respect of such a claim would be; or

  (b)   where the effect of the contract, but for subsection   (1), would be that the insurer would be under no liability in respect of such a claim--that the contract would not provide insurance cover in respect of the happening of that event.

  (3)   Regulations made for the purposes of this section take effect at the expiration of 60 days after the day on which they are registered on the Federal Register of Legislation under the Legislation Act 2003 .

  (4)   Where regulations made for the purposes of this section are amended after the day on which a particular contract of insurance is entered into, the amendments shall be disregarded in relation to the application of subsection   (1) to that contract.