Product Disclosure Statement (PDS)

A Product Disclosure Statement (PDS) is a standardized disclosure document required by the Corporations Act 2001 for all insurance products offered to retail clients in Australia. The PDS must be provided before a consumer purchases an insurance policy or, in limited circumstances, within 5 days after purchase. The document must include: a summary of significant benefits, risks, and features; details of premiums and fees; cooling-off period information; claims procedures; exclusions and limitations; the insurer's dispute resolution process; and information about the duty to take reasonable care when applying. The PDS must be written in clear, concise language and presented in a logical format that enables consumers to make informed decisions. Insurers must ensure the PDS is up-to-date and issue supplementary PDSs if material changes occur. ASIC can issue stop orders preventing the sale of products with deficient or misleading PDSs. Consumers should always read the PDS carefully before purchasing insurance, as it forms part of the insurance contract.