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ARTICLE · 02 SEPTEMBER 2009

Subrogation And Dual Insurance

Norton Rose Fulbright Australia
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In cases of dual insurance, only the insurer who provides indemnity for the full amount of the loss will have the right of subrogation.

AustraliaInsurance
Jo Bingham
Jo Bingham
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This case involved an indemnity dispute between Zurich Australian Insurance Ltd (Zurich) and Metals & Minerals Insurance Pte Ltd (MMI), where there were two insurance policies that could respond to a claim for personal injuries suffered by employees of Speno Rail Maintenance Australia Pty Ltd (Speno) whilst working for Hamersley Iron Pty Ltd (Hamersley). The Western Australian Court of Appeal provided further guidance on the effect and interpretation of s45 of the Insurance Contracts Act 1984 (Cth) (Act) and dealt with the issue of subrogation.

Speno agreed to indemnify Hamersley in respect of liability arising from personal injury to Speno's employees (contractual indemnity), and also added Hamersley as an insured under Speno's public liability policy held with Zurich.

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