Introduction The Australian insurance industry is divided into three parts. There is life, general and health insurance. Australian law that is responsible for the regulation and guidance of insurance policy in Australia has two main acts that it refers to. This is the Insurance Act of 1973 and the Insurance Contracts Act of 1984 that are the main cornerstones of Australian insurance law. However, there are other legislations that have been ratified by other states within the country that provide different insurance cover for all the individuals in the community (Lewis and Mann, 2003). There are different provisions that determine when it is the correct time to get relief from an insurance policy under the insurance law of Australia. The aim of this essay therefore is to find out the different laws that are present with regards to insurance, when an insurer has the right to get relief from his or her insurance policy and if he or she is covered or not. Some of the insurance policies tend to claim that they do cover everything. In this respect therefore, what are their extents and does the location of the insurer really matter during such a situation and how much information is to be provided by the insured with reference to the Insurance Contracts Act of 1984(Lewis and Mann, 2003). Insurable Interests and Insurance contracts The Insurance Contract act of 1984 is an act that is placed by Australian government on the terms and provision of insurance-by-insurance companies. The Insurance Contracts Acts of 1984 contains the different insurance policies, the standard cover provisions, the extent of each cover and when a given insurer is to get relief or not and circumstances that can make the insurance policy invalid (Latimer, 2011). According to Insurance Contracts Act of 1984 act, before any individual enters into any insurance policy, it is their duty to disclose to the insuring company any details they may know or should know concerning the decision whether to accept the risk of insurance and if so on what terms and conditions. The same duty applies before the policy is verified or reinstated. However, the insurer does not require disclosing any matter that diminishes the risk, is common knowledge, and is an ordinary course of business that is ought to be known. If these duties are not complied with then the contract entered, under the Insurance contract act of 1984, is not valid and the insuring company may default the policy (Australian Government [AG], 1984). Insurance basics state that the insurer covers the insured and in the event of any circumstances unknown to the insured, the insurer is supposed to pay relief to the insured. The insured to be covered should pay some premium to the insurer and must provide them with all needed information when required. Therefore, an insurance cover is a binding contract between these two parties and follows the principles of contract law. Insurable interest must be there as insurer is paid premium for covering the insured. The insured benefits from the policy as loss of the item or services insured can be recovered though a claim. For example a home owner has insurable interest on his house. This concept of insurable interest helps to distinguish wagering and insurance contracts (Butt, 1986).In Macuara v. Northern Assurance Co. Ltd 2 an assignment of timber was made by Macuara to