Duty to take reasonable care

The duty to take reasonable care

When you apply for insurance, you are treated as if you are applying for cover under an individual consumer insurance contract. A person who applies for cover under a consumer insurance contract has a legal duty to take reasonable care not to make a misrepresentation to the Insurer before the contract of insurance is entered into.

A misrepresentation is a false answer, an answer that is only partially true, or an answer which does not fairly reflect the truth.

This duty also applies when extending or making changes to existing insurance, and reinstating insurance.

If you do not meet your duty

If you do not meet your legal duty, this can have serious impacts on your insurance. Under the Insurance Contracts Act 1984 (Cth) there are a number of different remedies that may be available to the Insurer. They are intended to put the Insurer in the position it would have been in if the duty had been met. For example, the Insurer may:

avoid the cover (treat it as if it never existed);
vary the amount of the cover; or
vary the terms of the cover.

Whether the Insurer can exercise one of these remedies depends on a number of factors, including:

whether reasonable care was taken not to make a misrepresentation. This depends on all of the relevant circumstances;
what the Insurer would have done if the duty had been met – for example, whether it would have offered cover, and if so, on what terms;
whether the misrepresentation was fraudulent; and
in some cases, how long it has been since the cover started.

Before any of these remedies are exercised, the Insurer will explain the reasons for its decision, how to respond and provide further information, and what you can do if you disagree.

Guidance for answering the questions in this form

You are responsible for the information provided to the Insurer. When answering questions, please:

Think carefully about each question before you answer. If you are unsure of the meaning of any question, please ask us before you respond.
Answer every question.
Answer truthfully, accurately and completely. If you are unsure about whether you should include information, please include it.
Review your application carefully before it is submitted. If someone else helped prepare your application (for example, your adviser), please check every answer (and if necessary, make any corrections) before the application is submitted.

Please note that there may be circumstances where the Insurer later investigates whether the information given to it was true. For example, it may do this when a claim is made.

Changes before your cover starts

Before your cover starts, the Insurer may ask you whether the information that has been given as part of your application for insurance remains accurate or whether there has been a change to any of your circumstances. As any changes might require further assessment or investigation, it could save time if you let us or the Insurer know about any changes when they happen.

If you need help

It’s important that you understand your obligations and the questions that are being asked. Please contact us for help if you have difficulty understanding the process of obtaining insurance or answering any questions.

Please also let us know if you’re having difficulty due to a disability, understanding English or for any other reason - we're here to help and can provide additional support.

Declaration and acknowledgement

I declare that:

I’ve read and understood the Duty to take reasonable care. The answers I’ve provided, together with any special conditions will form the basis of the Insurer’s decision.
The answers I've provided are true, complete and correct.
I’m aware that a document that outlines the target market each AustralianSuper product is designed for is available.
I’ve read and understood the Product Disclosure Statement provided with this application and the Insurance in your super guide, and understand that additional information referred to in the guide is also part of the Product Disclosure Statement.
I'm aware that the Trust Deed and Rules govern AustralianSuper (including the rights and obligations of members) and that I can obtain a copy.
I've read AustralianSuper’s Privacy Collection Statement and I understand how AustralianSuper will use my personal information.
If I’ve provided my email address and/or phone number, I consent to AustralianSuper sending me information about my account, AustralianSuper’s products and services and marketing communications, including third-party products and services, via email, my account online, SMS, mobile app or phone, as appropriate and in accordance with AustralianSuper’s Privacy Policy and my existing communication preferences. I understand I can change my communication preferences at any time by calling AustralianSuper on 1300 300 273 or through the Communication preferences section of my account online.

I acknowledge that:

The information requested on this application (unless otherwise stipulated) is required in order for AustralianSuper to accept my application for membership and for the ongoing administration of my membership by AustralianSuper’s fund administrator and other service providers.
If I haven’t updated my insurance as part of this application, there’ll be no change to any basic insurance cover I have or am eligible for.
My eligibility to claim for benefits will be determined in line with AustralianSuper’s insurance policy terms and conditions.
Insurance cover will only be provided in line with the insurance policy terms and conditions as agreed between AustralianSuper and the Insurer. Those terms and conditions may change from time to time and AustralianSuper will notify me of those changes where required by law.
If I’ve applied to start my basic cover, and my application is accepted, my cover will start automatically if I'm receiving employer super contributions even if my super balance hasn’t reached $6,000. This means the cost of my cover will be deducted monthly from my super account.
I’ll no longer be insured for the types of cover I’ve cancelled (if any), and:
- I (or my beneficiaries) won’t be able to make an insurance claim if I suffer an illness or injury or I die after I cancel.
- The cost of cover won’t be or will stop being deducted from my super account (costs are deducted one month in arrears).
- Any cover type I have cancelled won’t start automatically, even if my super balance reaches $6,000 in the future.
- I might not be able to get cover later. If I decide to apply for that cover in the future I’ll need to provide detailed health information for the Insurer to consider. The age-based cover amounts I can apply for later, will be lower than the GHD Superannuation Plan basic age-based cover amounts.
- If I’m replacing this cover with another insurance policy, I’ll wait until the other super fund or insurer confirms my cover has started.
- I’ve considered getting financial advice to help work out if cancellation is right for me.
Any change in cover that’s been accepted by the Insurer will start from the later of:
- the date the change is accepted as long as I’m receiving employer super contributions into my super account), or
- the date I receive confirmation that my cover has started.
Any cover I’ve cancelled will stop from the date my cancellation is received by AustralianSuper or the Insurer (as applicable).

AustralianSuper’s Privacy Collection Statement was at the beginning of this application. Our Privacy Collection Statement and Privacy Policy may change from time to time.

For information on the Insurer’s privacy and information-handling practices, read their Privacy Policy Statement or call 1300 302 961 for a copy.