Kon v AMP Life Ltd [2006] NSWSC 1304

Kon v AMP Life Ltd [2006] NSWSC 1304

The plaintiff proved each contractual element required to be unable to work: since 2001 he suffered a depressive psychological illness and was under ongoing medical care; his usual occupation was the whole scope of his role as managing director, overall manager and chief rainmaker for Hymec; the illness prevented him from performing that occupation; and although he performed low-level tasks for Hymec after March 2002, those tasks were not performed for reward or in the hope of reward because the loan and superannuation arrangements were already in place and were not causally related to that work.

Jurisdiction
Australia
Judgment Date
04 December 2006
Procedural Posture
Claim on Income Continuation Insurance Contract for Declaration, Damages, Interest and Costs / Judgment After Hearing in the Equity Division
Outcome
Plaintiff entitled to relief; short minutes to be brought in.
Legal Topics
['income Continuation Insurance' 'construction of Insurance Contract' 'usual Occupation' 'remunerative Work' 'total Disablement']
['insurance' 'contract'] ['income Continuation Insurance' 'construction of Insurance Contract' 'usual Occupation' 'remunerative Work' 'total Disablement']

Case Brief

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Procedural Posture

Claim on Income Continuation Insurance Contract for Declaration, Damages, Interest and Costs / Judgment After Hearing in the Equity Division

Legal Issues

  1. 1 ['Whether the plaintiff was unable to work within clause 3 of the income continuation insurance contract throughout the relevant period.' "What point in time and what activities determine the plaintiff's usual occupation under the policy." "Whether the plaintiff's depressive illness prevented him from doing his usual occupation." 'Whether the plaintiff did any remunerative work within paragraph 68 of the policy rules.']

Ratio Decidendi

The plaintiff proved each contractual element required to be unable to work: since 2001 he suffered a depressive psychological illness and was under ongoing medical care; his usual occupation was the whole scope of his role as managing director, overall manager and chief rainmaker for Hymec; the illness prevented him from performing that occupation; and although he performed low-level tasks for Hymec after March 2002, those tasks were not performed for reward or in the hope of reward because the loan and superannuation arrangements were already in place and were not causally related to that work.

Court Disposition

Plaintiff entitled to relief; short minutes to be brought in.

Orders

  • ['The relief the plaintiff seeks in these proceedings will be granted.' 'Agreed short minutes be filed by delivery to the Associate within seven days.' 'If the defendant does not accept that costs should follow the event, submissions on costs should be exchanged and forwarded to the Associate within 14 days.']