Important Information for Clients

POLICY
This notice refers to a contract of insurance that you have entered into via our company. You should refer to your policy document for the full terms and conditions applicable and you should read them carefully. Should any doubts arise as to the scope of cover provided, please contact us for an explanation.
 
YOUR DUTY OF DISCLOSURE
Before you enter into a contract of general insurance and up until the commencement of the insurance, you have a duty, under the Insurance Contracts Act 1984, to tell the underwriter of anything that may affect the underwriters’ decision whether to insure you and on what terms.  You must tell the underwriter about anything that you know, or could be reasonably expected to know taking into account the nature and extent of the insurance cover to be provided and the class of persons who would ordinarily be expected to apply for such insurance cover.
For Eligible Contracts (Eligible Contracts involve individuals purchasing insurance for motor vehicles with carrying capacity under 2 tonne, motorcycle, home building and contents, residential strata, travel, personal accident and sickness and consumer credit) the above duty only applies to questions asked of you by the underwriter.  In answering any such questions you must tell them anything that you know and that a reasonable person in the circumstances would include.
You have the same duty before you renew, extend, vary or reinstate an insurance contract. You do not need to tell the underwriter anything that:
- reduces the risk to be insured or that is of common knowledge;
- the underwriter knows or, in the ordinary course of business, ought to know;
- the underwriter has waived your duty to tell them about.
 
NON-DISCLOSURE
If you fail to comply with your duty of disclosure, the insurer may be entitled to reduce their liability under the contract in respect of a claim.  If your non-disclosure is fraudulent, the insurer may also have the option of avoiding the contract from its beginning.
The requirement of full and frank disclosure of anything which may be material to the risk for which you seek cover (for example, claims, whether founded or unfounded) or to the magnitude of the risk, is of the utmost importance with this type of insurance. It is better to err on the side of caution by disclosing anything that might conceivably influence the insurers’ consideration of your proposal.
 
RETAIL CLIENTS
Under the Corporations Act 2001 and associated Regulations Retail Clients are provided with additional levels of protection from other insurance purchasers. The Act defines Retail Clients as:
Individuals or a small manufacturing business employing less than 100 people or any other business employing less than 20 people.
And that are being provided a financial service or product that relates to the following insurance covers:
Motor Vehicle (under 2 tonne), Home building, contents, personal and domestic, Sickness and Accident or Travel, Consumer Credit and other classes as prescribed by regulations.
 
WHAT ADVICE IS BEING PROVICED (RETAIL CLIENTS only)
If you are a RETAIL CLIENT (refer above) and a Statement of Advice has not been provided to you with this invoice then the advice that we are giving you related to this transaction is General Advice.
General Advice is advice that has been prepared without considering your current objective’s, financial situation or needs. Therefore, before acting on this advice, you should consider the appropriateness of the advice having regard to your current objective’s, financial situation or needs.
If the advice provided relates to the acquisition or possible acquisition of a new insurance policy and the insurer has prepared a Product Disclosure Statement (PDS) we will have attached the PDS for your review.  You should consider the PDS prior to making the decision to purchase this product.  Further information regarding the income we have been paid by the insurer for this transaction is available upon request.
 
CANCELLATION WARNING (RETENTION OF BROKERAGE AND FEES)
If a cover is cancelled before expiry of the period of insurance, we reserve the right to refund to you only the net return premium we received from the insurer, and not refund any part of the brokerage or fees we receive for arranging the cover.  A broker service fee may be charged to process the cancellation.
 
AVERAGE / CO-INSURANCE
It is most important that the Sum Insured you select is adequate to represent the value of the insured property and is calculated in accordance with the cover being arranged. Otherwise, you will be under-insured and in terms of the Average / Co-insurance provisions of your policy, you may be responsible for paying part of the loss you actually suffer.
 
UNDERWRITING AGENTS AND WHOLESALE BROKERS
In some cases we access insurance products via Underwriting Agents and Wholesale brokers rather than directly with the insurer.  In such cases should you wish to access the Financial Services Guide of the Underwriting Agency or Wholesale Broker please contact us and we will arrange to have a copy sent out to you.
 
WHOLESALE BROKER INFORMATION
In some cases we use the services of a Wholesale Broker (insurance intermediary) to access products that are not available to us directly from the underwriter. You can identify where we have used an insurance intermediary as the Invoice/schedule will show that the policy is placed via another Insurance Intermediary.  This situation usually arises where the insurance intermediary has developed a specialised product and competitive pricing for risks that are not commonly available directly from most insurers.  This means we are not dealing with the end insurer directly but via the insurance intermediary.  All insurance intermediaries that we deal with are required to hold an Australian Financial Services Licence and to place all client funds received into a Trust Account and are required to meet the same high standards in the delivery of their services that apply to us. Importantly all claims will be the ultimate responsibility of and paid for by the end insurer.
 
PREMIUM FUNDING WARNING
Premium funding allows you to spread out the cash flow associated with paying your insurance premiums over the next twelve months.  We receive a commission from the funder for arranging the funding contract, full details are available on request.
Please note that should the insurance policy be cancelled before the expiry date for whatever reason, the Premium Funder will charge you the full interest applicable to the contract, as detailed in the Loan Application Form.  Typically there will be no refund of our commission on the refund premium and no refund of any fee we may have charged you for arranging the cover.  We also reserve the right to charge you a policy cancellation handling fee.  In some cases insurers also apply minimum premiums to policies, which may further reduce the refund that you might otherwise receive.
The impact of the above on you is that any refund you receive for the mid term cancellation of your policy will usually be significantly less than a pro rata calculation would produce and in extreme cases may involve you having to make an additional final payment even though the policy has been cancelled. Therefore prior to cancelling a policy and replacing it with another cover we strongly recommend that you discuss your situation with us so that we can advise the exact extent and impact of the early cancellation provisions mentioned above.
 
ALTERATIONS
No alterations to the risk whatsoever will be admitted until you have notified us in writing and will not take effect until acceptance is confirmed by the insurance underwriters.
 
PAYMENT
You will not be insured if you fail to pay the premium in full within 14 days from commencement of the risk for new policies and prior to the due date for renewals unless alternative credit arrangements have been agreed with us in writing.
 
NEW POLICIES
Notwithstanding the above, you will not be insured if you do not submit the relevant Proposal within 30 days from commencement of the risk unless an extension of time has been agreed with us in writing.
 
CANCELLATION
If you cancel this insurance prior to the expiry date, we will be entitled to retain such proportion of any broker’s fee and/or commission that relate to the unexpired period of insurance.
 
PRIVACY ACT
The Privacy Act 1988 requires us to inform you on how we collect, use and disclose your personal information. A copy of our Privacy Policy Statement is available on request from our office or from our Website.
 
COOLING OFF
All Retail Products are subject to a 14-day “cooling off period” or any other cooling off period as provided by the insurer and stated in the insurance policy. This means that if you are not happy with a Retail Product, you have 14 days (or any other period as provided  by the insurance company)  to withdraw from the new contract at no cost to you other than our broker’s fee, which is not refundable.
 
DISCLAIMER
This notice is a summary only (errors and omissions excepted) and does not purport to be a copy of the insurance underwriters’ policy or other documents. In case of any discrepancy, the underwriters’ documents will prevail.
 
TERMS OF TRADE
Payment of this account constitutes your acknowledgement and acceptance of these conditions and authorises us to act as your insurance brokers for the risks outlined on the face hereof and no others unless specifically agreed by us in writing.
 
SUBROGATION
You are warned that should you become a party to any agreement that has the effect of excluding or limiting your insurer’s ability to recover from a third party, your insurers may have the right to refuse to indemnify you for such loss where it is shown that your insurer’s rights of recovery have been prejudiced by your action.
 
RIGHTS OF RECOVERY AGAINST OTHERS
It is a condition of a Contract of Insurance that you may not forego any right of recovery that may exist against another party without prior approval in writing being given by your insurer.
 
 
Affinity Risk Partners (Brokers) Pty Ltd (“Affinity”)
ABN No: 15 091 944 580
 
Level 1, 1265 Nepean Highway, CHELTENHAM  VIC  3192
T: (03) 8587 7777 | F: (03) 8587 7700 | E: info@affinityib.com.au
Affinity holds a current Australian Financial Services License No: 241185.