Green v AMP Life Ltd & Ors

The dispute in *Green v AMP Life Ltd & Ors* concerned a claim for permanent and total disablement benefits under a life insurance policy. The applicant, Mr. Green, had suffered a stroke and sought to recover under the policy, which defined disablement as being "permanently and totally disabled from engaging in any occupation for remuneration or profit." AMP Life Ltd and the other respondents denied liability, asserting that Mr. Green was not permanently and totally disabled within the meaning of the policy. The matter came before the High Court of Australia on appeal from the Full Court of the Supreme Court of New South Wales.

The central legal issue before the High Court was the proper construction of the phrase "permanently and totally disabled from engaging in any occupation for remuneration or profit." Specifically, the court had to determine whether this phrase required the insured to be incapable of engaging in *any* occupation whatsoever, or whether it referred to any occupation for which the insured might be reasonably suited by their education, training, or experience. The court also considered the role of the insured's capacity to earn income, rather than merely their ability to perform the physical or mental tasks of an occupation.

In their joint judgment, Hayne and Heydon JJ held that the phrase "any occupation" in the policy referred to any occupation that the insured could reasonably be expected to undertake, having regard to their background and qualifications. Their Honours emphasised that the focus was on the insured's capacity to earn income, not simply their ability to perform the duties of a particular job. The court found that Mr. Green, despite his stroke, retained the capacity to engage in other forms of work for remuneration or profit, even if those occupations were different from his previous employment. Consequently, he did not meet the definition of permanent and total disablement under the policy.

The High Court allowed the appeal, setting aside the orders of the Full Court of the Supreme Court of New South Wales and ordering that the applicant's claim be dismissed.