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ARTICLE · 11 APRIL 2018

Car insurance: Suspended licence? No indemnity!

Article discusses cases where car insurance policies were voided in circumstances of non-disclosure of licence suspension.

AustraliaInsurance

IN BRIEF - CAR INSURANCE POLICIES VOIDED IN CIRCUMSTANCES OF NON-DISCLOSURE OF LICENCE SUSPENSION

In Allianz Australia Limited v Taylor & Anor [2018] VSC 78, Associate Justice Mukhtar of the Supreme Court heard an appeal from the Magistrates' Court by Allianz regarding the order that it indemnify a driver under a car insurance policy.

LICENCE SUSPENSION NOT DISCLOSED TO ALLIANZ UPON RENEWAL OF CAR INSURANCE POLICY

The car, a Jeep, was purchased by Taylor for use by her daughter. The insurance policy was in Taylor's name, but her daughter was named as a "nominated driver" under the policy. Despite the vehicle remaining in her mother's name, the daughter assumed responsibility for the Jeep, including responsibility for payment of the insurance premiums, registration, actual costs of running the vehicle and any repairs.

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