Stanley v QBE Insurance Ltd

Stanley (the applicant) brought proceedings against QBE Insurance Ltd (the respondent) in the Federal Court of Australia. The dispute concerned the respondent's refusal to indemnify the applicant under a professional indemnity insurance policy for losses incurred in relation to a claim made against the applicant by a third party. The applicant sought a declaration that the respondent was liable to indemnify him.

The primary legal issue before the Court was whether the respondent was entitled to avoid the policy on the grounds of alleged non-disclosure or misrepresentation by the applicant concerning his prior claims history. Specifically, the Court had to determine if the applicant had failed to disclose material facts relating to previous insurance claims when applying for the policy, and if so, whether this failure entitled QBE to repudiate the policy.

Judge Nicholls found that the applicant had indeed failed to disclose material information regarding his claims history. The Court applied the principles of insurance law concerning the duty of disclosure, as codified in the *Insurance Contracts Act 1984* (Cth). It was held that the undisclosed information was relevant to the respondent's assessment of the risk and the premium to be charged. Consequently, the respondent was entitled to avoid the policy from its inception.

The Court therefore dismissed the applicant's claim for indemnity and made orders in favour of the respondent.