New South Wales Insurance Ministerial Corporation v Sherwood as Executrix of the Estate of the Late John Sherwood

The New South Wales Insurance Ministerial Corporation (the appellant) appealed to the New South Wales Court of Appeal against a decision of the District Court of New South Wales. The dispute concerned the appellant's liability to indemnify the respondent, Ms. Sherwood as executrix of the estate of the late John Sherwood, under a compulsory third-party motor vehicle insurance policy. The deceased had been involved in a motor vehicle accident and subsequently died.

The primary legal issue before the Court of Appeal was whether the appellant was liable to indemnify the respondent for the damages awarded to the deceased's estate in the District Court. This involved determining whether the deceased's actions constituted a wilful or intentional act that would exclude coverage under the relevant legislation and policy terms, particularly in light of the deceased's intoxication at the time of the accident.

The Court of Appeal considered the provisions of the *Motor Accidents Act 1988* (NSW) and the terms of the insurance policy. It was held that the deceased's intoxication, while a significant factor, did not, in itself, render his actions wilful or intentional in a manner that would vitiate the compulsory third-party insurance cover. The court applied the principle that for an act to be considered wilful or intentional so as to exclude indemnity, there must be a conscious decision to bring about the specific consequence that occurred, which was not established in this instance. The appeal was dismissed.