Mazur v Australian Associated Motor Insurers Limited

In the Supreme Court of Tasmania, the case of Mazur v Australian Associated Motor Insurers Limited involved a dispute regarding a comprehensive car insurance policy. The respondent, Mazur, claimed indemnity from the applicant, Australian Associated Motor Insurers Limited, for damages to his Subaru vehicle allegedly caused by an accident. The applicant insurer denied liability, asserting that the vehicle was being driven by the respondent under the influence of intoxicating liquor at the time of the accident, which would exclude coverage under the policy. The insurer had failed to appear in court after the respondent served the writ, resulting in an interlocutory judgment for the respondent for damages to be assessed. The insurer subsequently sought orders to set aside the interlocutory judgment and to allow them to defend the action.

The court was required to decide whether the exclusion clause in the insurance policy, which precluded coverage if the vehicle was being driven under the influence of intoxicating liquor, contravened the Road Safety (Alcohol and Drugs) Act 1970, and if so, whether it rendered the entire clause void. The court also had to interpret the phrase "this exclusion" in the context of the clause to determine whether it referred to all exclusionary events collectively or severally.

The court found that the exclusion clause did not contravene the Act to the extent that it excluded liability if the driver was under the influence of intoxicating liquor. The court interpreted the clause as intended to allow valid parts of the exclusion to apply even if part of it was declared void by law. The court rejected the respondent's argument that the clause should be construed in favour of the insured due to ambiguity, finding no ambiguity in the clause. The court also held that the insurer had presented an arguable defence based on the first exclusionary event in the clause, and granted the insurer's application to set aside the interlocutory judgment and allow them to defend the action.