When dealing with insurance matters, it is well-known that if
there is any dishonesty or false information provided to the
insurer, a claim for indemnification could be repudiated in its
entirety. However, what would the position be if the dishonesty was
on the part of an employee who submitted false information to the
insurer and did so without the employer's instruction? Would
the employer still be able to claim for cover? The Supreme Court of
Appeal handed down judgment in a matter that provides us with the
answer.
The Facts
In King Price Insurance Company Ltd v Concise
Consulting Services Pty Ltd, the Supreme Court of Appeal
decided on a matter wherein the insurer's decision aggrieved
the insured party. The insurer chose to repudiate a claim based on
a contractually included provision relating to rejection in the
case of the submission of fraudulent, dishonest, or inflated
claims, information or documentation. In addition, the provision
allowed the insurer to
