Insurance Law and Insurance Regulation

The Federal Court of Australia considered whether it was fair and reasonable to deduct the premiums associated with after the event (ATE) insurance taken out by the applicants' solicitors, from the funds to be paid in settlement of a class action.

This case note is particularly relevant for builders, developers, homeowners and purchasers of residential property. The decision effects when insurance will respond to defective building work any may significantly impact your ability to recover rectification costs, especially if you are buying or selling a property some years after construction.

Under Australian law, prior to entering into an insurance contract, an insured has a duty to disclose to the insurer any relevant matter that a reasonable person in the circumstances could be expected to know to be relevant.