Sharma v H.E.S.T. Australia Ltd [2022] FCA 536

FEDERAL COURT OF AUSTRALIA

Sharma v H.E.S.T. Australia Ltd [2022] FCA 536 File number(s): VID 549 of 2021

Judgment of: MCELWAINE J

Date of judgment: 13 May 2022

Catchwords: INSURANCE – appeal against Australian Financial Complaints Authority Limited (AFCA) determination affirming decision of Trustee and insurer to deny payment of additional death and income protection benefits of deceased policy holder on the basis of fraudulent misrepresentation – whether AFCA erred in interpreting ss 29 and 33 of Insurance Contracts Act 1984 (Cth) – whether AFCA erred in concluding that common law or equitable principles may operate in cases of fraudulent misrepresentation in group life policies where there is a change of insurer despite s 33 – whether conclusion that decision of insurer to avoid individual group life policy and of trustee to affirm avoidance were each fair and reasonable in operation was reached on a correct understanding of the law – AFCA materially erred in law – appeal allowed – matter remitted for redetermination

Legislation: Acts Interpretation Act 1901 (Cth) s 15A Corporations Act 2001 (Cth) ss 1050, 1051, 1053, 1054, 1055,1057 Insurance Contracts Act 1984 (Cth) ss 7, 12, 13, 21, 22, 25, 26, 29, 32, 33 Insurance Contracts Amendment Act 2013 (Cth) ss 3, 25, 29 Life Insurance Act 1995 (Cth) ss 190, 194, 195 Retirement Savings Accounts Act 1997 (Cth) Superannuation (Resolution of Complaints) Act 1993 (Cth). Superannuation Supervision Act 1999 (Cth) Explanatory Memorandum, Insurance Contracts Amendment Bill 2013