QBE Insurance (Australia) Ltd v Mordue

The appeal in *QBE Insurance (Australia) Ltd v Mordue* concerned a dispute over the assessment of a motor accident claim under the *Motor Accidents Compensation Act 1999* (NSW). QBE Insurance (Australia) Ltd, the appellant, sought to have the claim exempted from the statutory assessment process, while the first respondent, Mr. Mordue, contended that an initial admission of liability by QBE was binding for all purposes and precluded such an exemption. The matter came before the Court of Appeal of New South Wales.

The primary legal issues before the Court of Appeal were whether an admission of liability made by an insurer pursuant to section 81 of the *Motor Accidents Compensation Act 1999* was binding for all purposes, and consequently, whether QBE was entitled to an exemption from the statutory assessment process under section 92(1)(a) of the Act. The court also considered whether exemptions relating to fraud were distinguishable from the exemption sought by QBE.

The Court of Appeal held that an admission of liability under section 81 of the Act was not binding for all purposes and did not preclude an insurer from seeking an exemption from the statutory assessment process under section 92(1)(a). The court reasoned that the purpose of section 81 was to facilitate the early resolution of claims, not to create an unalterable admission of all aspects of liability. Furthermore, the court found that the exemption provisions under section 92(1)(a) were distinct from exemptions related to fraud, and that QBE had established grounds for exemption under the former.

The appeal was allowed, the orders of Adams J made on 20 February 2015 were set aside, and the first respondent was ordered to pay the appellant’s costs of the appeal and in the court below, with a certificate under the *Suitors’ Fund Act 1951* (NSW) to be provided if otherwise eligible.