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Australia—NSW Court of Appeal overturns first instance decision that fraudulent withdrawals were not sufficiently ‘related’ to aggregate (Bank of Queensland Ltd v AIG Australia Ltd)

Australia—NSW Court of Appeal overturns first instance decision that fraudulent withdrawals were not sufficiently ‘related’ to aggregate (Bank of Queensland Ltd v AIG Australia Ltd)
Published on: 21 August 2019
Published by: LexisPSL
  • Australia—NSW Court of Appeal overturns first instance decision that fraudulent withdrawals were not sufficiently ‘related’ to aggregate (Bank of Queensland Ltd v AIG Australia Ltd)
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Case details

Article summary

Insurance & Reinsurance analysis: The New South Wales Court of Appeal Supreme Court has reversed the Supreme Court’s first instance decision in Bank of Queensland Ltd v AIG Australia Ltd that a series of fraudulent withdrawals from an investment account, which were the subject of a class action against the insured, did not aggregate for the purposes of applying an AUS$2m per claim policy retention. The Court of Appeal reversed the first instance decision, ruling that each of the 192 claims comprising a class action against the insured arose from ‘Wrongful Acts’ that were ‘related’ because the insured’s ‘knowledge of fraud’ in each instance was a sufficient unifying factor. Only one retention was therefore applicable to the insured’s claim under the policy in respect of the class action. or take a trial to read the full analysis.

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