by Patrick Coetsee
The whole purpose of having insurance is so that you are covered
in the event things go wrong. Whether it's insurance for your
home and contents, or a business worth millions of dollars we
expect insurance to cover us. However what if you didn't tell
the insurer 'the whole truth and nothing but the truth'
when we signed up? Does the insurer still have to pay up or can
they get out of indemnifying your loss?
In a recently decided case of Prepaid Services v Atradius (no 2)
[2014] NSWSC 21 the New South Wales Supreme Court had to decide
these very questions.
The Atradius Case
According to the facts in this case, Atradius Credit Insurance
NV (Atradius) issued a trade credit insurance policy to a number of
pre-paid mobile service providers including Prepaid Services, Optus
Mobile Pty Limited, and Virgin Mobile Australia Pty Limited
(collectively known as "the plaintiffs").
