Consumer Insurance (Disclosure and Representations) Act 2012

The Consumer Insurance (Disclosure and Representations) Act 2012 reduces insurers' ability to deny claims or refuse coverage due to non-disclosure or misrepresentation by consumers, provided the consumer was honest and reasonable in their disclosure. It states both parties share responsibility for providing accurate information; consumers are expected to answer questions carefully. If a consumer’s failure to disclose information was accidental or reasonable, the insurer cannot reject a claim solely because of that omission. However, if misrepresentation was intentional or reckless, the insurer may limit or refuse payment. The Act aims to ensure fairness and clarity in insurance contracts.