A finding that an insured was not honest 'for whatever reason' is insufficient to engage s 56 of the Insurance Contracts Act 1984 (Cth). To rely on s 56, an insurer must plead and prove that the insured made a false statement with dishonest intent to induce a false belief in the insurer for the purpose of obtaining payment. The absence of a financial motive for fraud does not compel a finding that an insured event occurred; it is merely a factor to be weighed with other evidence. Where the probabilities are equal, the insured's claim fails without any finding of fraud being necessary.
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