Max Hams & Anor v CGU Insurance Limited [2002] NSWSC 843

Max Hams & Anor v CGU Insurance Limited [2002] NSWSC 843

Interest under s 57 Insurance Contracts Act 1984 should be calculated from 21 June 2000, being the date on which it was unreasonable for the insurer to withhold payment, as the investigations were sufficiently complete and further withholding could not be justified by bona fide dispute or complexity of the case.

Jurisdiction
Australia
Judgment Date
27 August 2002
Procedural Posture
Insurance Contractual Dispute / Determination of Entitlement to Interest on Claim After Liability Decided
Outcome
Interest under s 57 Insurance Contracts Act to be calculated from 21 June 2000; orders in terms of short minutes made.
Legal Topics
['interest Under Insurance Contracts Act' 'date of Unreasonable Withholding of Payment' 'discretionary Judgment Under S 57']
['insurance Law'] ['interest Under Insurance Contracts Act' 'date of Unreasonable Withholding of Payment' 'discretionary Judgment Under S 57']

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Procedural Posture

Insurance Contractual Dispute / Determination of Entitlement to Interest on Claim After Liability Decided

Legal Issues

  1. 1 ['From what date was it unreasonable for the insurer (CGU Insurance Limited) to withhold payment, such that interest under s 57 Insurance Contracts Act 1984 accrues?']

Ratio Decidendi

Interest under s 57 Insurance Contracts Act 1984 should be calculated from 21 June 2000, being the date on which it was unreasonable for the insurer to withhold payment, as the investigations were sufficiently complete and further withholding could not be justified by bona fide dispute or complexity of the case.

Court Disposition

Interest under s 57 Insurance Contracts Act to be calculated from 21 June 2000; orders in terms of short minutes made.

Orders

  • ['Interest under s 57 Insurance Contracts Act to run from 21 June 2000.' 'Orders made in terms of paragraphs 1, 2, 3, and 4 of the short minutes of order initialled and dated 27 August 2002.']