Heiler v NSW Insurance Ministerial Corporation (formerly GIO)

In *Heiler v NSW Insurance Ministerial Corporation (formerly GIO)*, the New South Wales Court of Appeal considered a dispute between the appellant, Heiler, and the respondent insurer concerning the insurer's liability under a motor vehicle insurance policy. The core of the disagreement revolved around whether the insurer was obligated to indemnify Heiler for damages arising from a motor vehicle accident.

The Court of Appeal was tasked with determining whether the insurer was estopped from denying indemnity to Heiler. Specifically, the court had to consider whether the insurer's conduct, in continuing to accept premiums after becoming aware of circumstances that might have entitled it to avoid the policy, amounted to a representation that it would not rely on those circumstances to deny indemnity.

The Court of Appeal found that the insurer was indeed estopped from denying indemnity. It reasoned that the insurer, by its conduct in accepting premiums after it had knowledge of the relevant facts, had led Heiler to believe that the policy remained on foot and that indemnity would be provided. This conduct created an assumption in Heiler that the insurer would not seek to avoid the policy, and it would be unconscionable for the insurer to resile from that assumption. The court applied the principles of equitable estoppel, focusing on the unconscionability of the insurer's conduct.

The Court of Appeal allowed the appeal, setting aside the judgment of the trial judge and ordering that the insurer was liable to indemnify Heiler.