Trajkovski v Commonwealth Insurance Ltd (No. 2)

The case of Trajkovski v Commonwealth Insurance Ltd (No. 2) involved the claimant, Trajkovski, seeking to recover under a home contents insurance policy for items of jewellery stolen from his insured address. The primary issue before the court was whether the claimant was entitled to compensation under the policy, considering the potential fraud involved in the theft and the claim process. The court had to determine if the theft constituted fraud under section 56 of the Insurance Contracts Act 1984 (Cth), and if so, whether this constituted fraud on the event or the claim.

The court examined the circumstances surrounding the theft, including the claimant’s involvement in the storage and reporting of the stolen items. It evaluated the claimant's credibility and the possibility of internal fraud within the claim process. The court held that there was sufficient evidence to conclude that the claimant had engaged in fraudulent conduct in relation to the stolen items. This included the claimant’s attempt to conceal the true value of the items and his involvement in the theft. Consequently, the court found that the claimant's actions constituted fraud on the event, which precluded the recovery of the stolen items under the policy.

In light of this finding, the court dismissed the claimant's claim for compensation. The court's reasoning was that the fraud on the event nullified any potential recovery under the insurance policy. The court did not need to address the issue of fraud on the claim as it found the fraud on the event to be sufficient grounds for the dismissal. The final orders of the court reflected this decision, with the claimant's claim being dismissed in its entirety.