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ARTICLE · 17 MARCH 2021

Recovery apportionment between insured and uninsured losses

Colin Biggers & Paisley
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Recent case reminds insurers of the benefit of expressly stating the agreed level of indemnification in a settlement deed.

AustraliaInsurance
Andrew Tulloch
Andrew Tulloch
Stuart Hetherington
Stuart Hetherington

In brief - Insurer successfully recovers part of its loss but Technology Swiss Pty Ltd v AAI Limited trading as Vero Insurance [2021] FCA 95 is a lesson for insurers of the benefit of expressly stating agreed level of indemnification in a settlement deed 

Chief Justice Allsop in the Federal Court of Australia recently considered how to apportion a recovery obtained from a carrier where insured and uninsured portions of the claimed loss were unclear.

In his decision in Technology Swiss Pty Ltd v AAI Limited trading as Vero Insurance, the Chief Justice carefully analysed the relevant case law from a number of jurisdictions and the principles of subrogation and recoupment.

Policy indemnity dispute with insurer settled at mediation but dispute over recovery arises after insured obtains full recovery from freight forwarder

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