State Government Insurance Commission (Respondent) v Switzerland Insurance Australia Limited (Trading as Federation Insurances) (Appellant) No. SCGRG 93/2028 Judgment No. 5118 Number of Pages 16 Insurance (1995)

The appeal is against the decision of the Master of the Supreme Court of South Australia who found in favour of the plaintiff, State Government Insurance Commission (SGIC), and ordered the defendant, Switzerland Insurance Australia Limited (trading as Federation Insurances), to contribute 50% of the judgment sum paid by SGIC, interest, and costs. The appeal concerns the principles of double insurance and contribution between insurers. The case involves a personal injury claim by an employee, Ramsay, against his employer, Quinn, and his co-employee, Willis, for injuries caused by Willis' negligence. SGIC and Federation Insurances had issued policies of insurance to Quinn that covered the same risk of personal injury. The trial judge found that the principles of double insurance applied, and each insurer was to bear 50% of the gross common law damages plus interest and costs.

The court found that the principles of double insurance applied because both policies covered the same risk of liability to pay damages for personal injury. The court rejected the argument that there was no double insurance because Willis was directly insured by SGIC under the statutory policy. The court held that the payment made by SGIC discharged the liability of both insurers to indemnify Quinn, and the doctrine of contribution between insurers applied. The court also found that the allowance for interest was not manifestly incorrect and dismissed the appeal and cross-appeal.

The final orders of the court were that the appeal be dismissed, and the defendant, Switzerland Insurance Australia Limited, was to pay 50% of the judgment sum, interest, and costs.