Khoury v Government Insurance Office (NSW) [1984] HCA 55

Khoury v Government Insurance Office (NSW) [1984] HCA 55

On the facts found, the appellants had a reasonably held belief that their children were systematically taking money from their business, and this belief was a material fact requiring disclosure to the insurer. The failure to disclose enabled the insurer to avoid the policy. Relief under s. 18 of the Insurance Act 1902 (NSW) was unavailable because the duty was not a term or condition of the contract.

Jurisdiction
Australia
Procedural Posture
Insurance Appeal / Appeal From Court of Appeal, Supreme Court of New South Wales to High Court of Australia
Outcome
appeal dismissed with costs
Legal Topics
['material Non Disclosure' 'duty of Disclosure' 'avoidance of Contract' 'election' 'insurance Act 1902 (nsw) S. 18']
['insurance Law'] ['material Non Disclosure' 'duty of Disclosure' 'avoidance of Contract' 'election' 'insurance Act 1902 (nsw) S. 18']

Case Brief

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Procedural Posture

Insurance Appeal / Appeal From Court of Appeal, Supreme Court of New South Wales to High Court of Australia

Legal Issues

  1. 1 ['Whether there was material non-disclosure by the appellants under an insurance policy' 'Whether the insurer elected to affirm the policy or could avoid it' 'Whether relief under s. 18 of the Insurance Act 1902 (NSW) was available']

Ratio Decidendi

On the facts found, the appellants had a reasonably held belief that their children were systematically taking money from their business, and this belief was a material fact requiring disclosure to the insurer. The failure to disclose enabled the insurer to avoid the policy. Relief under s. 18 of the Insurance Act 1902 (NSW) was unavailable because the duty was not a term or condition of the contract.

Court Disposition

appeal dismissed with costs

Orders

  • ['Appeal dismissed with costs']