FAI General Insurance Co. – v – Australian Hospital Care

The case demonstrates McLaughlins ability to conduct litigation at its highest level on insurance related issues.

McLaughlins were successful in acting for Australian Hospital Care in this much anticipated decision, in which the High Court clarified the operation of Section 54 of the Insurance Contracts Act 1994.

McLaughlins conducted the case from its inception in the District Court, through the Queensland Court of Appeal and finally, in the High Court where our client was successful. In essence, the High Court decided that the failure of an insured to notify of circumstances that might give rise to a claim pursuant to a circumstances notification clause, was an omission curable by Section 54. This decision has important ramifications of how insurers deal with late claims under professional indemnity and directors officers policies. The judgment does away with an insurers ability to decline a claim for indemnity, merely because it was not notified during the period of the “claims made and notified” policy.