Hannover Life Assurance Re of Australasia Ltd v Membrey

In Hannover Life Assurance Re of Australasia Ltd v Membrey, the applicant, Hannover Life, sought to appeal a decision of the Superannuation Complaints Tribunal (SCT) which had ruled that it was unfair and unreasonable for Hannover Life not to pay interest on a death benefit payable to the respondent, Mr Membrey. The insurance policy between Hannover Life and the Trustee of the relevant fund required the Trustee to notify Hannover Life of the death of any member and to provide all necessary information to enable Hannover Life to make any payment in respect of that member. The dispute centred around Hannover Life's refusal to pay interest on the benefit, claiming that it was not liable to do so until a later date. The SCT found that it was unfair and unreasonable for Hannover Life not to pay the benefit earlier and, consequently, not to pay interest on the benefit. Hannover Life argued that the SCT's decision was not supported by the evidence and that it was not contrary to the terms of the insurance policy. The Court found that the SCT's findings were open on the evidence, and that the Tribunal's conclusions and determination were not contrary to the terms of the policy of insurance. The Court held that the unfairness and unreasonableness found by the SCT to characterise Hannover Life's decision turned in part on the fact that it was within the express terms of the policy for Hannover Life to have made a different decision from the one it actually made as to proof of death up until 29 March 2000. The Court also held that it was not argued on behalf of Hannover Life that it could not be liable to pay interest on the benefit under the Insurance Contracts Act 1984 (Cth).

The appeal was dismissed and the determination of the SCT dated 19 May 2003 was affirmed. Hannover Life was ordered to pay the first respondent's costs.