Travel Insurance Australia

Travel Insurance Australia

                As a Travel Insurance Australia policyholder, you also have obligations under the contract (in addition to paying premiums). If you act improperly, the insurance company may be able to get out of paying benefits. There are usually three ways in which a Travel Insurance Australia policyholder may be subject to the loss of benefits.

Breach of Warranty

A Travel Insurance Australia warranty is a fancy name for a promise that is part of the insurance contract. In many insurance contracts, the policyholder will promise that something is true at the start of the policy or will continue to be true during the duration of the policy. Based on these warranties, certain underwriting decisions will have been made. For example, a homeowner who owns a dog known for biting may have a Travel Insurance Australia policy issued where the owner warrants that a muzzle will be kept on the dog when the animal is out in the yard. Failure to muzzle the pet could lead to the release of the insurance company from liability should the dog bite the mailman.

Misrepresentation

When you fill out an insurance application, you make representations to the company concerning facts about yourself. Many of these facts are vital to the underwriting process—for example, whether you smoke, in the case of a life insurance policy. If you lie about any of these facts and the company catches you, and if a court concludes that the lie was material (important) to the underwriting decisions of the company, you could lose benefits or the company may be allowed to cancel the Travel Insurance Australia policy.

Concealment

Sometimes people are dishonest by keeping quiet. Since an insurance contract is a contract of utmost good faith, failure to reveal a matter material to the underwriting decision of the insurance company may again be grounds for loss of benefits. For example, if you know that a forest fire is heading toward your house, you can’t call a property insurance agent, get an agreement for immediate coverage (see “Where Does Coverage Begin?” below), and expect to collect benefits when your house burns down. That just wouldn’t be cricket.