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ARTICLE · 24 APRIL 2017

An insured by any other name does not smell as sweet

Norton Rose Fulbright Australia
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ICA section 45 will only render an "other insurance" clause void if the insured is a contracting party to both policies.

AustraliaInsurance
Ray Giblett
Ray Giblett
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Lambert Leasing Inc. v QBE Insurance (Australia) Ltd [2016] NSWCA 254

A recent NSW court of appeal decision has confirmed that section 45 of the Insurance Contracts Act 1984 (Cth) (ICA) will only render an "other insurance" clause void where the insured is a contracting party to both policies.

The tragic crash and unfortunate loss of fifteen lives following the sale of a plane from Lambert Leasing (a subsidiary of SAAB AB) to Lessbrook Pty Ltd led to a game of pointed fingers regarding the insurance arrangements.

Global Aerospace insured SAAB AB and its subsidiaries, QBE Insurance insured Lambert. When relatives of the deceased crew and passengers brought proceedings in the United States, Lambert claimed under the Global Aerospace policy.

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