Insurance Law

Broad Interpretation of Section 54 of the ICA Continues

Contact: Mark Brookes and David Fisher; Carter Newell (Queensland, Australia)

Section 54 of the Insurance Contracts Act 1984 (Cth) provides relief to insureds with claims that fall within the scope of a policy, but whose acts or omissions otherwise entitle the insurer to avoid paying the claim.

The section was recently considered at Appellate Court level by the Western Australian Court of Appeal in Matthew Maxwell v Highway Hauliers Pty Ltd (Highway Hauliers), in which a broad interpretation was preferred.

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