The Victorian Court of Appeal held that clause 9 of Schedule 2 of the Licensed Plumbers General Insurance Order 2002 does not entitle a building owner to enforce a plumber's liability insurance policy directly against the insurer until the plumber's liability to the owner has been established, and the plumber has then refused to enforce the indemnity. A plumber's failure to make a claim on its insurer before any claim has been made against the plumber does not constitute a 'refusal to make a claim' within the meaning of the Ministerial Order. The Court further held that non-compliance by an insurer's policy with the Ministerial Order does not give rise to a cause of action by the building owner against the insurer; the consequence of non-compliance is that the plumber is ineligible for licensing, not that the owner acquires enforceable rights against the insurer.
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