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ARTICLE · 11 JUNE 2017

Interpreting insurance policy coverage clauses: can extrinsic material be considered?

Norton Rose Fulbright Australia
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The broad language of the coverage clause was to be read in line with both the policy and relevant external materials.

AustraliaInsurance
Andrea Garratt
Andrea Garratt
Davor Tocakovic
Davor Tocakovic
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The recent decision in AAI Limited t/as Vero Insurance v GEO Group Australia Pty Limited [2017] NSWCA 110 affirmed what we've known all along: courts will read a coverage clause objectively in the context of the whole insurance contract.

But does this context include extrinsic material? According to the New South Wales Court of Appeal, it certainly does.

Does a failure to provide services involve the conduct of those services?

GEO Group Australia (GEO) privately operates Parklea Correctional Centre (Parklea).

In February 2010, Mr Mace was arrested for various armed robbery offences. Refused bail, he was transferred into protective custody at Parklea. Upon arrival, Mr Mace informed staff that he was taking medication for schizophrenia and depression. Despite this, GEO failed to properly assess him for the obvious risk of self-harm.

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