Allianz Australia Insurance Limited v Insurance Australia Limited t/as NRMA Insurance

Allianz Australia Insurance Limited appealed to the Full Court of the Supreme Court of the Australian Capital Territory against a decision concerning the recovery of statutory rehabilitation expenses from a common law damages award. The dispute involved Insurance Australia Limited, trading as NRMA Insurance, and the appellant, Allianz.

The primary legal issue before the Full Court was whether statutory rehabilitation expenses, incurred by an insurer under workers' compensation legislation, were recoverable from a common law damages award made to an injured worker. This question arose in the context of an appeal and a cross-appeal concerning the assessment of damages and the apportionment of costs.

The Full Court considered the interplay between statutory entitlements and common law rights in the context of workers' compensation. It reasoned that the statutory scheme for rehabilitation expenses was distinct from the common law right to damages for negligence. The Court determined that the legislation did not contemplate or permit the recovery of these statutory expenses from a common law damages award, as doing so would effectively allow the insurer to recoup payments mandated by statute from a sum intended to compensate the worker for their common law loss.

Consequently, the appeal brought by Allianz was dismissed with costs. However, the cross-appeal by NRMA Insurance was allowed, and the previous judgment was set aside. The proceedings were dismissed with costs, reflecting the Court's determination on the recoverability of the rehabilitation expenses.