Knowing me, knowing you: What’s the matter with s 21(1)(B) of the Insurance Contracts Act 1984 (Cth)?
The objective test of non-disclosure in s 21(1)(b) of the Insurance Contracts Act 1984 (Cth) remains elusive in its meaning and operation. Despite the time of assessment being prior to entry into a contract of insurance, disputes over an insured’s non-disclosure inevitably arise after a claim is mad...
| Main Author: | |
|---|---|
| Format: | Journal Article |
| Published: |
LexisNexis
2023
|
| Online Access: | http://hdl.handle.net/20.500.11937/93983 |
| _version_ | 1848765823914606592 |
|---|---|
| author | Allison, Simon |
| author_facet | Allison, Simon |
| author_sort | Allison, Simon |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | The objective test of non-disclosure in s 21(1)(b) of the Insurance Contracts Act 1984 (Cth) remains elusive in its meaning and operation. Despite the time of assessment being prior to entry into a contract of insurance, disputes over an insured’s non-disclosure inevitably arise after a claim is made, when investigations uncover matters an insurer argues were relevant to its decision to accept the risk of a contract of insurance, and the circumstances on which it does. The test in s 21(1)(b) did away with the common law prudent insurer standard of materiality. Despite this, resolution of questions of non-disclosure can be complex exercises in inference drawing, and courts are reticent to give weight to hindsight evidence of insurers. Complex fact scenarios involving the disclosure of opinions and allegations cases have put into question the practical utility of settled principles on the application of the test. Recent cases demonstrate a move towards a broader consideration of circumstances relevant to s 21(1)(b), providing a more flexible construction to resolve conceptual issues that the legislation is otherwise silent on. |
| first_indexed | 2025-11-14T11:41:23Z |
| format | Journal Article |
| id | curtin-20.500.11937-93983 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T11:41:23Z |
| publishDate | 2023 |
| publisher | LexisNexis |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-939832024-01-23T01:38:33Z Knowing me, knowing you: What’s the matter with s 21(1)(B) of the Insurance Contracts Act 1984 (Cth)? Allison, Simon The objective test of non-disclosure in s 21(1)(b) of the Insurance Contracts Act 1984 (Cth) remains elusive in its meaning and operation. Despite the time of assessment being prior to entry into a contract of insurance, disputes over an insured’s non-disclosure inevitably arise after a claim is made, when investigations uncover matters an insurer argues were relevant to its decision to accept the risk of a contract of insurance, and the circumstances on which it does. The test in s 21(1)(b) did away with the common law prudent insurer standard of materiality. Despite this, resolution of questions of non-disclosure can be complex exercises in inference drawing, and courts are reticent to give weight to hindsight evidence of insurers. Complex fact scenarios involving the disclosure of opinions and allegations cases have put into question the practical utility of settled principles on the application of the test. Recent cases demonstrate a move towards a broader consideration of circumstances relevant to s 21(1)(b), providing a more flexible construction to resolve conceptual issues that the legislation is otherwise silent on. 2023 Journal Article http://hdl.handle.net/20.500.11937/93983 LexisNexis restricted |
| spellingShingle | Allison, Simon Knowing me, knowing you: What’s the matter with s 21(1)(B) of the Insurance Contracts Act 1984 (Cth)? |
| title | Knowing me, knowing you: What’s the matter with s 21(1)(B) of the Insurance Contracts Act 1984 (Cth)? |
| title_full | Knowing me, knowing you: What’s the matter with s 21(1)(B) of the Insurance Contracts Act 1984 (Cth)? |
| title_fullStr | Knowing me, knowing you: What’s the matter with s 21(1)(B) of the Insurance Contracts Act 1984 (Cth)? |
| title_full_unstemmed | Knowing me, knowing you: What’s the matter with s 21(1)(B) of the Insurance Contracts Act 1984 (Cth)? |
| title_short | Knowing me, knowing you: What’s the matter with s 21(1)(B) of the Insurance Contracts Act 1984 (Cth)? |
| title_sort | knowing me, knowing you: what’s the matter with s 21(1)(b) of the insurance contracts act 1984 (cth)? |
| url | http://hdl.handle.net/20.500.11937/93983 |