Insurance Disputes:

Insurance is a neglected area of legal inquiry for parties that engage in litigation. What is often not contemplated by litigating individuals is the effect of the litigation on an insurance policy which may be connected to the subject matter of the dispute. This is a very serious matter and can result in costly adverse consequences if advice on the effect of the dispute on insurance is overlooked.

Ordinarily, insurance policies today will contain what are known as “Exclusion Clauses”.  Exclusion Clauses are provisions in the contract of insurance which allows the insurer to avoid being liable to make a pay out under the policy in the event that certain conditions are (or are not) met.

Many disputes concerning the liability of an insurance company to pay-out on an insurance policy essentially revolve around the interpretation of the Exclusion Clauses. Unfortunately, there are many individuals who enter into insurance policies who do not take sufficient care or seek legal advice in considering the implications of these Exclusion Clauses in their relevant circumstances. As a result, they sign up for policies which may be quite narrow in terms of when they will provide insurance relief. Disputes will almost certainly arise where a claim is made by the insured and denied by the insurer.

Some common Exclusions Clauses may disclaim liability in the event that there has been a failure to disclose some material information prior to entering into the insurance policy. The insurer can then be in the position of asserting that this failure is unfair on them as the insurer did not enter into the contract with fully informed consent. The result is that the insurer may seek to use this as a basis for refusing to pay on a claim and potentially to terminate the insurance policy altogether. Other common exclusions may involve allegations of fraud or professional negligence.

The insurer will have an implied obligation of good faith under the terms of the policy. This can sometimes be available in a counter-claim against the insurer who erroneously relies on an Exclusion Clause to deny a claim. The outcome of these considerations will of course rely on the outcome of factual and legal investigations.

Apart from these considerations, a case litigated under the principles of insurance law may very well require the interpretation of statutory provisions such as the:

• Insurance Act 1973 (Cth), and
• Insurance Contracts Act 1984 (Cth).

A policy of insurance is a contract but its interpretation is assisted by the Insurance Contracts Act, so policyholders should not be too quick to assume that wordings which may appear to exclude a claim will in fact have that actual result.

At Navado, our solicitors have the experience and the expertise to consider your insurance dispute in the context of the situation as it arises. At Navado, our team of Lawyers have the experience to consider a number of relevant areas of law in advising the best cause of action in relation to your complex dispute. It may be that your complex matter is not best pursued through a single area of law, and at Navado we turn our minds and experience to examining the number of areas which may be applicable and offer you a comprehensive and thorough advice. Our staff come from a wide variety of backgrounds and including qualified accountants and are able to approach your matter with a mind to the circumstances of your case. Additionally Navado has considerable access to a wide variety of expert counsel who may be able to assist you in the most focused and effective way regarding your complex matter. The combination of our in-house expertise, resources and counsel allows Navado to cover the field of law and advise you in relation to your complex matter, with a mind to advising you of causes of actions.

If you are in dispute with your insurer about a claim or the application of the policy, we recommend that you contact our firm on (02) 9233 4048 or send an email to info@navado.com.au and arrange an appointment to see one of our Complex Disputes & Litigation Solicitors. 

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.