Leading Synthetics Pty Ltd v Adroit Insurance Group
Pty Ltd & Anor [2011] VCS 467 (21 September
2011)
Introduction
In this case, the Supreme Court of Victoria determined that even
where no written policy is prepared, no invoice issued and no
premium is paid, a contract of insurance may still exist.
Background
Leading Synthetics Pty Ltd ('Leading Synthetics')
supplied synthetic resins to customers on 60 day payment terms.
Signum Synthetics ('Signum') was one such customer.
In late 2007, Leading Synthetics had growing concerns that a
number of its customers, including Signum, may fall into arrears
amidst the start of the global financial crisis. In an effort to
reduce its credit risk exposure, Leading Synthetics instructed its
insurance broker to obtain credit risk insurance.
