QBE Insurance Ltd v Jande

QBE Insurance Ltd appealed to the New South Wales Court of Appeal against a decision of the District Court of New South Wales. The dispute concerned the interpretation of a motor vehicle insurance policy and whether it covered damage sustained by the insured vehicle, a Mercedes-Benz sedan, while it was being driven by a person who was not a licensed driver. The insured, Mr. Jande, had claimed under his comprehensive insurance policy with QBE for the damage.

The primary legal issue before the Court of Appeal was whether the policy's exclusion clause, which stated that the insurer would not be liable if the vehicle was driven by a person "not licensed to drive the vehicle," applied in the circumstances. This required the court to determine the meaning of "licensed to drive the vehicle" in the context of the policy and the relevant legislation, specifically the *Motor Vehicles (Third Party Insurance) Act 1942* (NSW). The court also had to consider whether the exclusion clause was void as being contrary to public policy or statutory provisions.

The Court of Appeal, in allowing the appeal, held that the exclusion clause was not void. It reasoned that the phrase "licensed to drive the vehicle" referred to the driver holding a valid driver's licence authorising them to drive that class of vehicle, not a specific licence for that particular vehicle. As the driver in question held a valid licence, the exclusion clause did not operate to deny coverage. The court emphasised that the purpose of such clauses was to prevent uninsured or unlicensed drivers from operating vehicles, a concern addressed by the driver holding a general licence.

Consequently, the Court of Appeal set aside the District Court's judgment and ordered that judgment be entered for the appellant, QBE Insurance Ltd.