Onepath Life Ltd v Standley

Onepath Life Ltd appealed to the New South Wales Court of Appeal against a decision of the primary judge in favour of the respondent, Mr Standley, who had claimed under a total and permanent disablement (TPD) policy. The dispute concerned whether Mr Standley met the definition of TPD under the policy, which required him to be totally and permanently disabled after a three-month absence from his "Own Occupation".

The Court of Appeal was required to determine two primary legal issues. First, whether the three-month period of absence from "Own Occupation" must commence on the date the insured first ceased to engage in that occupation. Second, whether the insured could satisfy the TPD definition due to a psychological condition that arose after the initial three-month absence from engaging in his occupation. The court also considered whether the medical evidence sufficiently established that Mr Standley was unable and unlikely ever again to be able to engage in his "Own Occupation".

The Court of Appeal dismissed the appeal, upholding the primary judge's finding that Mr Standley met the TPD definition. The court reasoned that the three-month period did not need to commence on the exact date Mr Standley ceased working, but rather on the date he was unable to perform his own occupation. Furthermore, the court held that a psychological condition developing after the initial three-month absence could still satisfy the definition, provided it rendered the insured unable to engage in their own occupation and unlikely ever to be able to do so again. The medical evidence was found to be sufficient to establish these conditions. Consequently, the appellant was ordered to pay the respondent's costs.