Under section 58 of the IC A written law made by parliament. Also called an ‘Act of parliament’, ‘statute’ or legislation. an insurer must provide a policyholder with a minimum 14 days’ notice of the impending expiry (time and date) of a Insurance provided for a particular period of time, of a kind that is usual to renew at the end of that period of time. (insurance that is provided for a particular period of time and is of a kind that it is usual to renew at the end of that period of time). If an insurer fails to give this notice in accordance with section 58, the policy is automatically reinstated, for the same length of time as the original An agreement that the law will enforce. or until the policyholder obtains replacement insurance, whichever occurs first.
Section 60 of the IC Act contains a number of grounds upon which an insurer may cancel an insurance contract (which is not a life insurance contract).
These grounds include:
- the policyholder’s failure to comply with the duty of Providing information to another person or institution as required by a contract or other legal process.;
- the policyholder’s Making a statement or doing something that is false, to try to get someone to do something they would not otherwise do, for example buy goods of poor quality. before the contract was entered into;
- failure to pay a premium; or
- the making of a fraudulent claim.
The section also permits insurers to cancel, at any time, a A document given by an insurer to a client as evidence that temporary insurance is in place while the formal policy document is being prepared. and renewable contracts extended by operation of section 58 of the IC Act.
If an insurer wishes to cancel an insurance contract it must comply with section 59 of the IC Act, which requires an insurer to provide the policyholder with a written notice of the proposed cancellation. The section also states when the cancellation becomes effective.
Section 63 of the IC Act provides that a cancellation is Having no legal effect. A void agreement has something wrong with it, so it cannot be a legally binding contract. For example, a verbal agreement to buy land would be void, because the law says those contracts have to be in writing. unless it is done in accordance with the IC Act. Under the 2013 reforms to the IC Act, the provisions under section 63 have been strengthened.