AMP General Insurance Ltd v Mayne Nickless Ltd

AMP General Insurance Ltd (the appellant) appealed to the Court of Appeal of New South Wales against a judgment of the Supreme Court of New South Wales in favour of Mayne Nickless Ltd (the respondent). The dispute concerned the interpretation of a third-party motor vehicle insurance policy and whether it covered an injury sustained by an employee of the respondent. The injury was alleged to have been caused by a defect in the insured vehicle.

The primary legal issue before the Court of Appeal was whether the definition of "injury" within the relevant statutory framework, specifically the *Motor Accidents Amendment Act 1995* (NSW), encompassed an injury caused by a defect in the vehicle itself, as opposed to an injury arising from the use or operation of the vehicle. This required the court to consider the scope of the third-party policy and the legislative intent behind the amendments to the Act.

The Court of Appeal, in allowing the appeal, reasoned that the statutory amendment had narrowed the scope of what constituted an "injury" for the purposes of third-party policies. It held that an injury caused by a defect in the vehicle, without any further element of negligent use or operation, did not fall within the definition of "injury" as contemplated by the amended legislation and the terms of the policy. The court applied principles of statutory interpretation to ascertain the legislative intent, concluding that the amendments were intended to exclude such claims from compulsory third-party coverage.

Consequently, the appeal was allowed, the judgment in favour of the respondent was set aside, and the respondent's claim against the appellant was dismissed. The appellant was awarded costs.