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Insurance Contracts Act 1984
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Administered by
Department of the Treasury
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C2024C00063 C32
01 March 2024
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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
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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
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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
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Part III—Insurable interests
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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
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Part IV—Disclosures and misrepresentations
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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
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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
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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
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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
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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
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Part V—The contract
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Division 1—Standard cover
34 Interpretation
35 Notification of certain provisions
36 Interpretation of regulations
37 Notification of unusual terms
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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
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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
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Division 3—Remedies
54 Insurer may not refuse to pay claims in certain circumstances
55 No other remedies
55A Representative actions by the ASIC
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Part VI—Claims
56 Fraudulent claims
57 Interest on claims
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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
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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
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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
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Part IXA—Enforcement
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Division 1—Civil penalty provisions
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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
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Part X—Miscellaneous
76 Contribution between insurers
78 Regulations
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Endnotes
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
