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ARTICLE · 22 JUNE 2012

General: Interest payable on proven part of insurance claim

Norton Rose Fulbright Australia
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Insurers are on notice that undisputed amounts under a policy of insurance must be paid within a reasonable timeframe.

AustraliaInsurance
Barry Richardson
Barry Richardson
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Insurers are on notice that undisputed amounts under a policy of insurance must be paid within a reasonable timeframe. The Supreme Court of Queensland recently considered a decision by insurers to withhold undisputed amounts of a claim for indemnity by an insured, while indemnity was in dispute in relation to other parts of the claim.

In Oakland Investments (Aus) Limited v 'Certain Underwriters at Lloyds' & Anor [2012] QSC 6, the Supreme Court of Queensland considered whether Underwriters had breached the terms of a Mortgage Indemnity and Impairment Policy (the policy) issued to Oakland Investments (Oakland) by delaying payment of undisputed amounts under the policy.

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