Allianz Australia Workers Compensation (NSW) Limited v NRMA Insurance Limited

Allianz Australia Workers Compensation (NSW) Limited appealed to the Full Court of the Supreme Court of the Australian Capital Territory against a decision of a Master. The dispute concerned a claim for contribution between two insurers, Allianz, a New South Wales workers compensation insurer, and NRMA Insurance Limited, the compulsory third party insurer of a trailer. The central issue was whether Allianz was entitled to contribution from NRMA in respect of a workers compensation claim paid to a worker injured in New South Wales while unloading the trailer.

The Full Court was required to determine whether there was a co-ordinate or common liability between Allianz and NRMA that would found a claim for contribution. Specifically, the court had to consider the nature of the insurance policies and the circumstances of the injury to ascertain if both insurers were liable for the same damage or loss, thereby giving rise to a right of contribution under the relevant law.

The court reasoned that for contribution to arise, there must be a common liability to the injured party. In this instance, the worker's injury occurred in New South Wales and was covered by Allianz under New South Wales workers compensation legislation. The trailer, however, was insured under a compulsory third party policy issued in the Australian Capital Territory. The court found that the compulsory third party policy issued in the ACT did not extend to cover liability for injuries sustained in New South Wales, particularly in circumstances where the primary liability was that of a New South Wales workers compensation insurer. Consequently, there was no co-ordinate or common liability between the two insurers in respect of the worker's injury, and therefore, no basis for a contribution claim.

The appeal was dismissed. The order made by the Master regarding costs was set aside, and the respondent, NRMA, was ordered to pay two-thirds of Allianz's costs of the appeal, as well as Allianz's costs of the hearing before the Master. Otherwise, there were no further orders as to costs.