Diosdado Sayseng v Kellogg Superannuation Pty Ltd & Anor [2007] NSWSC 857

Diosdado Sayseng v Kellogg Superannuation Pty Ltd & Anor [2007] NSWSC 857

Applying s 57(2), the Court held that reasonableness is judged by reference to the true position on the claim, with allowance for a reasonable period for the insurer to investigate and consider its position, not by evaluating the insurer's bona fides. Given the information available after receipt of the member's statement, medical material and employer's statement, and the time already available to investigate, 17 September 1999 was the day from which it was unreasonable for the insurer to have withheld payment.

Jurisdiction
Australia
Judgment Date
08 August 2007
Procedural Posture
Claim for Interest Under S 57 Insurance Contracts Act 1984 (cth) Following Determination of Insurer Liability Under a Total and Permanent Disablement Policy / Judgment on Interest Issue
Outcome
The Court determined that interest under s 57(2) was payable from 17 September 1999.
Legal Topics
['interest on Insurance Claims' 'insurance Contracts Act 1984 (cth) S 57' 'total and Permanent Disablement' 'unreasonable Withholding of Payment']
['insurance Law'] ['interest on Insurance Claims' 'insurance Contracts Act 1984 (cth) S 57' 'total and Permanent Disablement' 'unreasonable Withholding of Payment']

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Procedural Posture

Claim for Interest Under S 57 Insurance Contracts Act 1984 (cth) Following Determination of Insurer Liability Under a Total and Permanent Disablement Policy / Judgment on Interest Issue

Legal Issues

  1. 1 ["From what date it was unreasonable for the insurer to have withheld payment of the plaintiff's claim for the purposes of s 57(2) of the Insurance Contracts Act 1984 (Cth)." 'What period was reasonable for the insurer to investigate and assess the total and permanent disablement claim before interest became payable.']

Ratio Decidendi

Applying s 57(2), the Court held that reasonableness is judged by reference to the true position on the claim, with allowance for a reasonable period for the insurer to investigate and consider its position, not by evaluating the insurer's bona fides. Given the information available after receipt of the member's statement, medical material and employer's statement, and the time already available to investigate, 17 September 1999 was the day from which it was unreasonable for the insurer to have withheld payment.

Court Disposition

The Court determined that interest under s 57(2) was payable from 17 September 1999.

Orders

  • ['The parties are to calculate the amount of interest payable by the insurer by reference to 17 September 1999.' "The insurer is to pay the plaintiff's costs of the hearing of the interest issue." 'The trustee is to bear its own costs of the hearing of the interest issue.' 'The plaintiff is directed to bring in...