AMP Workers' Compensation Services (NSW) Ltd v QBE Insurance Ltd

AMP Workers' Compensation Services (NSW) Ltd (AMP) and QBE Insurance Ltd (QBE) were the parties involved in a dispute concerning double insurance and contribution. The case was heard in the Court of Appeal of New South Wales.

The central legal issue before the court was whether AMP, as an insurer, was entitled to claim contribution from QBE, another insurer, in circumstances where both insurers had provided cover to the same insured. This question arose in the context of AMP having paid a claim and seeking to recover a portion of that payment from QBE, which also had an insurance policy in place that arguably covered the same risk. The court was required to determine the principles governing contribution between insurers in cases of double insurance and the implications of the plaintiff's choice of defendants in such proceedings.

The Court of Appeal affirmed the established legal principle that where two or more insurers cover the same risk for the same insured, and one insurer pays more than its rateable proportion of the loss, that insurer is entitled to claim contribution from the other insurer(s). The court considered the nature of the policies issued by AMP and QBE and concluded that they did indeed cover the same risk. The court's reasoning focused on the equitable basis of contribution, which aims to ensure that no insurer bears an unfair burden when multiple policies are in effect. The court also addressed the plaintiff's ability to choose which insurer(s) to sue, confirming that this choice does not preclude the right to contribution between the insurers themselves.

The appeal was dismissed, and AMP was ordered to pay QBE's costs.