AIG Australia Ltd v Hanna

[2024] NSWCA 91

NSW Court of Appeal

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Interrogate

Catchwords

1. Insurance
2. › Public liability insurance
3. › Insuring clause
4. › Construction of 'legally liable to pay as compensation'
5. › Whether liability determined by bona fide compromise agreement falls within scope of indemnity
6. › Whether consent judgment activates insuring clause
1. Insurance
2. › Public liability insurance
3. › Wrongful repudiation by insurer
4. › Insured's obligation to prove claim
5. › Whether insured must prove actual liability to third-party claimant
6. › Whether proof of objectively reasonable settlement suffices
7. › Insurance Contracts Act 1984 (Cth)
1. Insurance
2. › Public liability insurance
3. › Settlement without insurer's consent
4. › Reasonableness of settlement
5. › Conditions for insured to rely on settlement against insurer who wrongfully repudiated policy
1. Appeal
2. › Amendment of notice of appeal
3. › Leave to raise new ground not run below
4. › Whether argument may have been met by further evidence at trial
5. › Prejudice to respondent

Quick Take

An insured whose policy has been wrongfully repudiated need not prove actual liability to the third-party claimant; it suffices to prove the settlement was objectively reasonable having regard to the relevant circumstances, including the insured's litigation risk.