A PAQS driver testing endorsement in a commercial vehicle insurance policy is a condition or exclusion within s 54(1) of the Insurance Contracts Act 1984 (Cth), not an inherent restriction on the scope of cover, and s 54(1) prevents the insurer from refusing to pay a claim where the driver's failure to complete the test did not cause or contribute to the loss. The only inherent restrictions on claims under occurrence/event-based policies are that the insured event must have occurred within the period of insurance and must be of the type covered by the policy. The failure of a driver to complete a proficiency test before driving is an 'omission' within s 54(1) even though satisfactory completion is not wholly within the driver's control. Consequential loss of profits from wrongful refusal to indemnify under a property damage policy is not too remote where the insurer knew the insured operated a commercial haulage business using the insured vehicles.
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