GIO General Ltd v Wallace

GIO General Ltd (the insurer) appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales concerning a claim made by Mr Wallace (the insured) under a home building insurance policy. The dispute arose after Mr Wallace's residential premises, which were insured under the policy, began to be used for business purposes, and following threats and minor property damage.

The Court of Appeal was required to determine whether Mr Wallace had breached his duty of disclosure under the *Insurance Contracts Act 1984* (Cth) by failing to inform the insurer of the increased business use of his premises. Additionally, the court had to consider whether the insurer had breached its duty to inform Mr Wallace of his duty of disclosure, as stipulated by the Act.

The court found that Mr Wallace had breached his duty of disclosure by failing to notify GIO General Ltd of the change in the use of his premises from purely residential to include business activities. This failure was considered a material non-disclosure. The court also found that GIO General Ltd had not breached its duty to inform Mr Wallace of his disclosure obligations.

The appeal was allowed, and the Supreme Court's decision was set aside. The court ordered that Mr Wallace's claim be dismissed.