A failure to satisfactorily complete a regulatory requirement that depends on another person's assessment (such as a flight review) is not an 'omission' within s 54 of the Insurance Contracts Act 1984 (Cth). Section 54 does not operate to convert a claim excluded by a policy into one the policy answers; it only prevents refusal based on acts or omissions where the policy would otherwise respond to the claim. Where a biennial flight review is not completed and the loss is caused by pilot error, the omission is reasonably capable of causing or contributing to the loss under s 54(2).
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