Section 54 of the Insurance Contracts Act 1984 (Cth) does not operate to cure an insured's failure to give notice under s 40(3) because s 40(3) creates a statutory right independent of the contract, and s 54 only applies where the contract itself would provide cover but for the omission. An insured who fails to give notice of facts that might give rise to a claim during the policy period cannot rely on the combination of ss 40(3) and 54 to obtain indemnity. Additionally, a settlement that does not account for the insurer's interests and reflects factors personal to the insured (such as impecuniosity) is not objectively reasonable for the purpose of proving loss against the insurer.
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