Cigna Insurance Asia Pacific Ltd v Packer

(2000) 23 WAR 159; [2000] WASCA 415

Western Australia Court of Appeal

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For Australian Law.

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Interrogate

Catchwords

1. Limitation of Actions
2. › Accrual of cause of action
3. › Contract of insurance
4. › Personal accident policy
5. › Payment of fixed sum upon happening of defined event
6. › Whether cause of action accrues on occurrence of insured event or on refusal of claim
7. › Limitation Act 1935 (WA), s 38(1)(c)(v)
1. Insurance
2. › Personal accident insurance
3. › Non-indemnity policy
4. › Payment of fixed sum on happening of event
5. › Permanent total disablement
6. › Whether submission of claim is condition precedent to liability
7. › Whether implied term requiring submission of claim
1. Contract
2. › Implied terms
3. › Insurance contract
4. › Whether term requiring submission of claim before liability arises should be implied
5. › Business efficacy test
1. Limitation of Actions
2. › Burden of proof
3. › Whether plaintiff or defendant bears onus of proving cause of action accrued within or outside limitation period
4. › Limitation Act 1935 (WA), s 38

Quick Take

Under a personal accident insurance policy providing for payment of a fixed sum upon the happening of a defined event, the cause of action accrues upon the occurrence of the insured event (here, permanent total disablement lasting 12 months), not upon the insurer's refusal of a claim or the insured's submission of a claim form. There is no implied term requiring submission of a claim as a condition precedent to the insurer's liability. The proposition in Council of the City of Penrith v GIO that no cause of action accrues while there remains a possibility of the defendant performing its promise should not be followed in respect of personal accident policies.