Product Disclosure Statement (PDS)

A Product Disclosure Statement (PDS) is a mandatory Australian document that insurers must provide before you buy a policy. It sets out what is and isn’t covered, the claims process, cooling-off periods, and all the terms and conditions.

Think of it as the rulebook for your insurance policy. If you want to know exactly what you’re paying for, the PDS is where you find the answer.

Why It Matters

• It’s the definitive source of truth for what your policy covers and what it excludes.
• Claims can be declined if the event falls under an exclusion listed in the PDS.
• It explains your obligations as a policyholder, including your duty of disclosure.
• It outlines how to make a claim and what the insurer needs from you.
• Reading it before you buy helps you avoid surprises at claim time.

What a PDS Includes

• Coverage details - What events and losses the policy covers.
• Exclusions - What is specifically not covered.
• Conditions - Your obligations, such as maintaining your property or reporting claims promptly.
• Excess amounts - How much you pay when you make a claim (see excess).
• Limits and sub-limits - The maximum the insurer will pay, overall and for specific items.
• Claims process - How to lodge a claim and what evidence you need.
• Cooling-off period - Usually 14 to 21 days during which you can cancel for a full refund.
• Dispute resolution - How to complain and escalate if you’re not happy.

Simple Examples

• You check your PDS before making a claim for water damage and discover that flood from rivers is covered but stormwater runoff has a separate, higher excess.
• A business owner reads their PDS and realises their business insurance excludes cover for goods in transit, prompting them to add separate transit cover.
• After a claim is declined, a policyholder reviews their PDS and sees the specific exclusion the insurer relied on.

Common Mistakes or Misunderstandings

• Not reading it at all. Most people don’t, and it’s where the important details live.
• Confusing the PDS with the certificate of insurance. The certificate of currency confirms your cover is active. The PDS explains what the cover actually does.
• Confusing the PDS with the FSG. The PDS is about the product. The Financial Services Guide is about the broker or adviser.
• Thinking the PDS never changes. Insurers update their PDS from time to time. Check you have the current version at each renewal.

When to Speak to a Broker

If the PDS is hard to understand (they can be long and technical), your broker can translate it into plain English and highlight the bits that matter most for your situation.

Need help?

If you want help understanding your PDS or comparing the fine print across different insurers, reach out to Tank Insurance and we’ll break it down for you.

Related Terms

• Policy Wording - The PDS and policy wording work together. The PDS is the product-level document, and the policy wording may include your specific schedule and endorsements.
• Financial Services Guide (FSG) - The FSG covers the adviser, while the PDS covers the insurance product.
• Duty of Disclosure - Your PDS will explain your obligation to disclose all relevant information when applying for insurance.