Mann's annotated Insurance Contracts Act

736 Pages·2016·3.482 MB·English

by  Candace Lewis, Peter Mann

Mann s
’
Annotated Insurance
Contracts Act
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Mann s Annotated Insurance
’
Contracts Act
SEVENTH EDITION
REVISED
by
PETER MANN
LLB (Tas) LLM (Syd)ANZIIF (Fellow) CIP
Barrister, Ground Floor Wentworth Chambers, Sydney
Adjunct Lecturer, Faculty of Law, University of Sydney
and
CANDACE LEWIS
BALLM (Hons) (Syd), Lawyer and Claims Consultant
LAWBOOK CO.
2016
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Preface
It has been two years since the last edition of this book.
This seventh edition is an anniversary edition. It is the 30th anniversary of the
commencement of the Insurance Contracts Act 1984 (ICA) on 1 January 1986.
In fact it is a double anniversary edition. 2016 is also the sestercentennial, or as
some would describe it, the quarter-millennial of Lord Mansfield’s important
watershed judgment in Carter v Boehm. Lord Mansfield’s 1766 judgment is the
most important judgment in the genesis of the duty of utmost good faith.
The comprehensive legislative amendments to the ICA by way of the Insurance
ContractsAmendmentAct 2013 (ICAA2013) have now commenced.They had a
staggered commencement. Some of the amendments commenced on Royal
Assent on 28 June 2013. Others commenced on other dates; 28 December 2013,
28 June 2014 and 28 December 2015. The ICAA 2013 amended sections
generally apply to contracts of insurance entered into or renewed or varied after
the respective commencement dates. Commencement criteria vary according to
the amendment and whether the amended section concerns general insurance or
life insurance. For some time to come, care will have to be taken in determining
whether the pre amendment “old section” or the post amendment “new section”
applies to a particular contract of insurance.
The ICAA 2013 has effected significant changes to the ICA in several areas.
There are changes to the areas of: utmost good faith, electronic communication,
the powers ofASIC, disclosure and misrepresentations, remedies under contracts
of life insurance, the rights of third party beneficiaries and subrogation. It is
notable, at the time of the anniversary of Carter v Boehm, that whilst the ICA
2013 amendments have taken the duty of utmost good faith under the ICA even
further away from the common law duty, some of elements formulated by Lord
Mansfield remain.
Themostsignificantadditionssincethelasteditionhavebeentothecommentary
on sections 13 (utmost good faith), 21 (disclosure) and 54 (remedies). Over 20
cases have been added to the commentary. Amongst them, the High Court
decision of Maxwell v Highway Hauliers which was heralded in the last edition.
Our general goals remain the same. This book is aimed at a wide audience and
thusitisnecessarilycomprehensive.Itincorporatesabackground/synopsistothe
sections of the legislation, extensive references to relevant case law, a generous
use of direct quotations and commentary. The book’s headings, sub-headings,
cross referencing of sections, examination of the relationship between sections
andthedescriptionoftheleveloflegalauthority,arealldesignedforeaseofuse.
In the sections which have a great deal of commentary, paragraph numbers
correspond with section and sub-section to assist in recognition.
Peter Mann
Sydney – June 2016
© 2016THOMSONREUTERS vii

Table of Contents
Preface.............................................................................................................. vii
Contents............................................................................................................ ix
About this Publication................................................................................... xi
Table of Cases................................................................................................. xiii
Table of Abbreviations................................................................................... xxix
INSURANCE CONTRACTSACT
Part I – Preliminary....................................................................................... 11
Part IA–Administration.............................................................................. 51
Part II – The duty of the utmost good faith............................................. 61
Part III – Insurable interests........................................................................ 155
Part IV – Disclosures and misrepresentations......................................... 165
Part V – The contract.................................................................................... 303
Part VI – Claims............................................................................................ 493
Part VII – Expiration, renewal and cancellation..................................... 531
Part VIII – Subrogation................................................................................ 551
Part IX – Information, notices and reasons.............................................. 569
Part X – Miscellaneous................................................................................. 583
INSURANCE CONTRACTS REGULATIONS
Part 1 – Preliminary...................................................................................... 593
Part 4 – Disclosures and misrepresentations............................................ 597
Part 5 – The contract – standard cover..................................................... 603
Part 10 – Miscellaneous............................................................................... 625
Part 11 – Transitional arrangements........................................................... 631
Schedule 1 – Writing to inform of duty of disclosure........................... 632
© 2016THOMSONREUTERS ix
Mann’sAnnotatedInsuranceContractsAct
Schedule 1A– Writing to inform persons to be insured by others..... 635
Schedule 1B – Writing to remind of duty of disclosure....................... 636
Schedule 2 – Words to inform of duty of disclosure for eligible 637
contracts of insurance....................................................................................
Schedule 3 – Key facts sheets..................................................................... 638
CODES OFPRACTICE
General Insurance Code of Practice........................................................... 643
Insurance Brokers Code of Practice........................................................... 662
Index................................................................................................................. 679
x Mann’sAnnotatedInsuranceContractsAct