Bayswater Car Rental Pty Ltd v Hannell

(1999) 29 MVR 35; [1999] WASCA 34

Western Australia Court of Appeal

Built by Barristers,
For Australian Law.

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Interrogate

Catchwords

1. Insurance
2. › Liability insurance
3. › Contract of liability insurance
4. › Car rental agreement containing collision indemnity clause
5. › Whether provision of insurance within meaning of Insurance Contracts Act 1984 (Cth)
6. › Whether owner undertaking personal indemnity or arranging external insurance
7. › Insurance Contracts Act 1984 (Cth), ss 10(2), 11(6), 11(7), 51(1)
1. Insurance
2. › Liability insurance
3. › Third party rights against insurer
4. › Whether third party may recover from insurer prior to judgment against insured
5. › Whether indemnity limited to court judgment against renter
6. › Insurance Contracts Act 1984 (Cth), s 51(1)
1. Contract
2. › Construction
3. › Car rental agreement
4. › Meaning of 'provides collision indemnity'
5. › Whether owner personally indemnifying renter or arranging external insurance

Quick Take

A collision indemnity clause in a car rental agreement that provides indemnity 'on a Court Judgment against the Renter' does not enable a third party to recover directly from the car rental company under s 51(1) of the Insurance Contracts Act 1984 (Cth) without first obtaining judgment against the renter. The majority also held that such a clause, properly construed, may not constitute a provision of insurance at all where the owner is merely undertaking to arrange external insurance rather than personally indemnifying the renter.