Fraudulent non-disclosure and misrepresentation in property claim successfully proven

In brief - Court satisfied that insurer would have declined cover had the misrepresentations not been made

On 11 December 2015, the Supreme Court of Victoria published its judgment inKalabakas v Chubb Insurance Company of Australia Ltd [2015] VSC 705 permitting the defendant insurer to avoid a policy and decline a property claim on the basis of fraudulent non-disclosure and misrepresentation. The Court also found that, regardless of fraud, the insurer was entitled to reduce its liability to nil. Notably, the defendant called no less than eight witnesses, including the broker and their insurance underwriters, in addition to a substantial body of documentary evidence in order to successfully prove its defence.