King & Wood Mallesons

Asia-Pacific 100 position: 2

Third parties wishing to proceed against an insurer under s6 must ensure they fall within the statutory limitation period

Previous bulletins have noted the timing difficulties inherent in applying the statutory charge provisions contained in Law Reform (Miscellaneous Provisions) Act 1946 (NSW) s6 (and cognate legislation in ACT, NT and New Zealand). If the event that gives rise to the claim for damages or compensation does not coincide with the period of insurance cover, there are no insurance moneys to which a s6 (or equivalent statutory) charge can attach. Sometimes, the event pre-dates the policy, as was the case in Genworthand Malouf. In other cases, the event may post-date the period of cover.

Even where the event and the cover coincide, a third party wishing to proceed against an insurer under s 6 must ensure that they fall within the statutory limitation period that would be imposed on any claim against the insured…

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