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Under the Insurance Contracts Act 1984 (the Act); you have a Duty of Disclosure. You are required before you enter into, renew, vary, extend or reinstate your Policy, to tell your insurer everything you know that a reasonable person in the circumstances could be expected to know, is a matter that is relevant to the insurer’s decision whether to accept the risk of insurance and, if so, on what terms.
Your duty, however, does not require disclosure about any matter:
A co-insurance (average) clause applies to the Property, Business Interruption & Electronic Equipment sections of this policy.
This means that if the Sum Insured for any items of Property insured under the Property Section; or the Gross Income insured under the Business Interruption section; or any item of Electronic Equipment insured under the Electronic Equipment section is less than 80% of its value at the time you take out the Policy and at each renewal, your claim will be reduced in proportion to the amount of underinsurance.
The application of co-insurance is in accordance with the following formula:
I hereby declare that: