Allianz Australia Workers Compensation (NSW) Limited v PPG Industries Australia Pty Limited

Allianz Australia Workers Compensation (NSW) Limited appealed a decision of the Master of the Supreme Court of the Australian Capital Territory, which ordered Allianz to indemnify PPG Industries Australia Pty Limited for $400,000. This sum represented the respondent's liability for damages and costs arising from personal injuries sustained by a former employee, Kevin Richard Tomlin, in the course of his employment. The core of the dispute was whether Allianz's workers compensation policy, issued under New South Wales legislation, provided cover for injuries sustained in the Australian Capital Territory, as opposed to New South Wales only.

The Court of Appeal was required to determine two primary legal issues. Firstly, whether the terms of the insurance policy, including the incorporated proposal form, limited the indemnity to liabilities arising from injuries sustained within New South Wales. Secondly, the court had to consider whether common law damages awarded to an injured worker constituted "compensation in the nature of workers compensation" for the purposes of an exclusionary clause within the policy.

The Court of Appeal dismissed the appeal, upholding the Master's finding that Allianz was liable to indemnify PPG. The court reasoned that the policy's indemnity clause (cl 3) did not contain any provision limiting the scope of cover by reference to the proposal form. Furthermore, the court found that section 159(1) of the Workers Compensation Act 1987 (NSW) and relevant regulations restricted the ability to incorporate such limitations. The court also rejected the argument that common law damages fell within the exclusionary phrase "compensation in the nature of workers compensation," distinguishing it from statutory workers compensation entitlements. The court applied the principle of construing ambiguous policy terms against the insurer, as the policy was put forward by Allianz.