Insurance Law

Appeal court holds firm on s 54 regarding jet ski accident

Author: Rebecca Stevens, Partner and Allison Bailey, Senior Associate

An insurer has failed in its bid to decline cover based on an exclusion in its policy, with the ACT Court of Appeal hearing the matter of Allianz Australia Insurance Ltd v Smeaton regarding an injury caused by an unlicensed jet ski driver in 2010.

In April 2016, The Supreme Court of the ACT in Whittington v Smeaton held that Allianz Australia Insurance Ltd could not avoid covering the owner and driver of a jet ski under a Club Marine policy by relying on section 54(2) of the Insurance Contracts Act 1984 (Cth).

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