A policy wording sets out the detailed terms, conditions, definitions, exclusions and other provisions applying to an insurance policy.

Depending on the insurance product, the policy wording may form part of a Product Disclosure Statement (PDS), be issued with a PDS, or be provided as a separate document.

A PDS and a policy wording should therefore not automatically be treated as the same document.

What does a policy wording contain? #

It can explain:

• What the policy covers
• Definitions used in the policy
• Exclusions
• Conditions
• Limits and sub-limits
• Claims requirements
• Responsibilities following an incident or claim

The wording should be read together with your policy schedule and any endorsements.

Your schedule shows how the policy has been arranged for you, while endorsements can change the standard wording.

Policy wordings can differ significantly between insurers and between different versions of the same product.

Contact our team if you need help understanding how your policy documents work together.