FAI WORKERS' COMPENSATION (NSW) LTD v BARNSLEY JOINERY WORKS PTY LTD [1996] NSWCA 179

FAI WORKERS' COMPENSATION (NSW) LTD v BARNSLEY JOINERY WORKS PTY LTD

SUPREME COURT OF NEW SOUTH WALES — COURT OF APPEAL

MAHONEY P, CLARKE JA and HANDLEY JA 2 August 1996

[1996] NSWCA 179

WORKERS' COMPENSATION — agency — payment and renewal notice received by broker — transition between new and old Acts — transfer of policies between companies within insurance group upon operation of new Act — Workers' Compensation Act 1926 — Workers Compensation Act 1987.

The respondent had taken out a workers' compensation policy with Traders Prudent Insurance Company Ltd covering its liabilities to workers which expired at 4 pm on 30 June 1987. That company was licensed under the Workers' Compensation Act 1926 and was part of the FAI Group. This business was transacted through an insurance broker with which the Group maintained agency agreements. The respondent received a renewal notice in June 1987 which required a declaration as to the actual wages paid in 1986 and an estimate for 1987. The notice was

Mahoney P. The Court has had the benefit of the written submissions and oral argument and is in a position to give a judgment. I will ask Justice Handley to give the first judgment.

Handley JA. This is an appeal from a decision of Nash DCJ in which he dismissed the appellant's claim to recover a premium from the respondent for the renewal of its workers" compensation policy, with effect from 30 June 1987.

The respondent had taken out a workers" compensation policy with Traders Prudent Insurance Company Ltd, a company in the FAI Group, which was a licensed insurer under the Workers" Compensation Act 1926 covering its liabilities to workers for the 1986 year which expired at 4 pm on 30 June 1987. This business was transacted through an insuranceyear and to declare the estimated wages which it would be paying to its workers during the 1987 policy year.