Australian Securities and Investments Commission v Auto & General Insurance Company Limited [2024] FCA 272

FEDERAL COURT OF AUSTRALIA

Australian Securities and Investments Commission v Auto & General Insurance Company Limited [2024] FCA 272 File number(s): NSD 310 of 2023

Judgment of: JACKMAN J

Date of judgment: 22 March 2024

Catchwords: INSURANCE – unfair contract terms regime – where term of product disclosure statement required insured to "tell us if anything changes while you're insured with us" – whether term unfair – interaction of unfair contract terms regime with Insurance Contracts Act – whether concept of "transparent" includes clarity of meaning – how lack of transparency should be taken into account under unfair contract terms regime – proceedings dismissed

Legislation: Australian Securities and Investments Commission Act 2001 (Cth) ss 12BF, 12BG Competition and Consumer Act 2010 (Cth) sch 2 ('Australian Consumer Law') ss 23, 24 Financial Sector Reform (Hayne Royal Commission Response — Protecting Consumers (2019 Measures)) Act 2020 (Cth) Insurance Contracts Act 1984 (Cth) ss 12, 13, 14, 15, 37, 54, 55 Explanatory Memorandum, Trade Practices Amendment (Australian Consumer Law) Bill (No 2) 2010 (Cth) Replacement Explanatory Memorandum, Financial Sector Reform (Hayne Royal Commission Response – Protecting Consumers (2019 Measures)) Bill (Cth)

Cases cited: ACCC v Smart Corporation Pty Ltd [2021] FCA 347; (2021) 153 ACSR 347 Allianz Australia Insurance Ltd v Delor Vue Apartments CTS 39788 [2022] HCA 38; (2022) 97 ALJR 1 AMP Financial Planning Pty Ltd v CGU Insurance Ltd [2005] FCAFC 185; (2005) 146 FCR 447 Australian Competition and Consumer Commission v Ashley & Martin Pty Ltd [2019] FCA 1436 Australian Competition and Consumer Commission v Chrisco Hampers Australia Ltd [2015] FCA 1204 Australian Competition and Consumer Commission v CLA Trading Pty Ltd [2016] FCA 377 Australian Competition and Consumer Commission v JJ Richards & Sons Pty Ltd [2017] FCA 1224 Australian Competition and Consumer Commission v Servcorp Ltd [2018] FCA 1044 Australian Competition and Consumer Commission v Smart Corporation Pty Ltd [2021] FCA 347; (2021) 153 ACSR 347 Australian Consumer and Competition Commission v ACN 117 372 915 Pty Ltd (in liq) (formerly Advanced Medical Institute Pty Ltd) [2015] FCA 368 Carnival plc v Karpik [2022] FCAFC 149; (2022) 294 FCR 524 Carter v Boehm (1766) 97 ER 1162 CGU Insurance Ltd v AMP Financial Planning Pty Ltd [2007] HCA 36; (2007) 235 CLR 1 Forsikringsaktieselkapet Vesta v Butcher [1989] AC 852 Karpik v Carnival plc [2023] HCA 39; (2023) 98 ALJR 45 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd [2015] HCA 37; (2015) 256 CLR 104 NSW Medical Defence Union Ltd v Transport Industries Insurance Co Ltd (1985) 4 NSWLR 107 The Western Australian Insurance Company Limited v Dayton (1924) 35 CLR 355 Todd v Alterra at Lloyd's Limited [2016] FCAFC 15; (2016) 239 FCR 12 Wilkie v Gordian Runoff Ltd [2005] HCA 17; (2005) 221 CLR 522 Australian Law Reform Commission, "Insurance Contracts" (Report No 20, 1982) JC Campbell, "Unenforceable Exclusions in Travel Insurance" (2018) 29(2) Insurance Law Journal 71 Commonwealth Department of Treasury, "Extending Unfair Contract Terms Protections to Insurance Contracts" (Proposals Paper, June 2018)