MetLife Insurance Ltd v Hellessey

[2018] NSWCA 307

NSW Court of Appeal

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Interrogate

Catchwords

1. Insurance
2. › Life insurance
3. › Total and permanent disablement
4. › Benefit conditional on insurer's satisfaction
5. › Implied obligation to act reasonably and fairly
6. › Whether breach of obligation in process of consideration
7. › Whether outright rejection of lay witness material without rational reasons constituted breach
1. Insurance
2. › Life insurance
3. › Total and permanent disablement
4. › Standard of review of insurer's decision
5. › Distinction between unreasonableness of outcome and unreasonableness of process
6. › Whether insurer's opinion binding if process unreasonable even if outcome open to reasonable insurer

Quick Take

An insurer's TPD decision may be invalidated for unreasonableness of the consideration process — including outright rejection of lay witness material without rational reasons — even if the outcome itself was open to a reasonable insurer on the material.