FEDERAL COURT OF AUSTRALIA

AIA Australia Limited v Richards (No 4) [2017] FCA 1100

File number:

NSD 1853 of 2016

Judge:

ALLSOP CJ

Date of judgment:

20 September 2017

Catchwords:

INSURANCE – fraudulent claims made by respondent under life insurance contract – summary judgment entered in favour of applicant – quantification of judgment sum – making of declarations

Legislation:

Insurance Contracts Act 1984 (Cth), s 56

Cases cited:

AIA Australia Ltd v Richards (No 3) [2017] FCA 1069

Date of hearing:

Determined on the papers

Date of last submissions:

13 September 2017

Registry:

New South Wales

Division:

General Division

National Practice Area:

Commercial and Corporations

Sub-area:

Commercial Contracts, Banking, Finance and Insurance

Insurance List

Category:

Catchwords

Number of paragraphs:

4

Counsel for the Applicant:

Ms R Francois

Solicitor for the Applicant:

William Roberts Lawyers

Counsel for the Respondent:

The Respondent did not appear

ORDERS

NSD 1853 of 2016

BETWEEN:

AIA AUSTRALIA LIMITED (ABN 79 004 837 861)

Applicant

AND:

VINCENT BRIAN RICHARDS

Respondent

JUDGE:

ALLSOP CJ

DATE OF ORDER:

20 SEPTEMBER 2017

THE COURT ORDERS THAT:

1.    Judgment be entered in favour of the applicant including pre-judgment interest up to 20 September 2017 in the sum of $69,722.71.

THE COURT DECLARES THAT:

2.    On 19 October 2016, the applicant validly refused to pay claims made by the respondent pursuant to s 56(1) of the Insurance Contracts Act 1984 (Cth).

3.    The contract of insurance between the applicant and the respondent was validly cancelled by the applicant on 19 October 2016.

Note:    Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

REASONS FOR JUDGMENT

ALLSOP CJ:

1    On 11 September 2017, I made orders in relation to this matter and published reasons: see AIA Australia Ltd v Richards (No 3) [2017] FCA 1069. I directed that the applicant file a schedule of sums paid after February 2016, together with pre-judgment interest thereof. I attach the schedule which was filed on 13 September 2017. I have checked that schedule and there is an inaccuracy. The judgment sum should be $90.85 less than the sum indicated of $69,813.56. Therefore, the orders that I make will include an order for judgment in the sum of $69,722.71.

2    In accordance with my reasons in Richards (No 3), the applicant is also entitled to the declarations sought in prayers 1(a) and (b) of the interlocutory application filed 21 July 2017.

3    I have already made an order for costs.

4    Therefore, the orders I would make, in addition to the orders made on 11 September 2017 are as follows:

1.    Judgment be entered in favour of the applicant including pre-judgment interest up to 20 September 2017 in the sum of $69,722.71.

2.    Declare that:

(a)    on 19 October 2016, the applicant validly refused to pay claims made by the respondent pursuant to s 56(1) of the Insurance Contracts Act 1984 (Cth); and

(b)    the contract of insurance between the applicant and the respondent was validly cancelled by the applicant on 19 October 2016.

I certify that the preceding four (4) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Chief Justice Allsop.

Associate:

Dated:    20 September 2017

ANNEXURE A – SCHEDULE OF CLAIMED PAYMENTS AND INVESTIGATION COSTS

ANNEXURE B – CORRECTED SCHEDULE OF CLAIMED PAYMENTS AND INVESTIGATION COSTS