Waterman v Gerling Australia Insurance Company P/L & Anor [2005] NSWSC 1066

65 NSWLR 300 Reported Decision : 194 FLR 419 (2005) 13 ANZ Insurance Cases 61-664

New South Wales Supreme Court

CITATION : Waterman v Gerling Australia Insurance Company P/L & Anor [2005] NSWSC 1066

HEARING DATE(S) : 15 September 2005

JUDGMENT DATE : 21 October 2005

JUDGMENT OF : Brereton J

CATCHWORDS : INSURANCE - Marine and Aircraft Insurance - non-payment of premium instalments - whether clause providing for cover to cease on non-payment on due date confers election on insurer or has automatic effect - whether automatic cessation of cover is "cancellation" within Insurance Contracts Act, s 59 - distinction between provision for cancellation and provision limiting liability of insurer - whether notice under Insurance Contracts Act, s 59 required. - CONTRACT - Waiver - election between inconsistent rights - waiver of one default does not waive subsequent default. - ESTOPPEL - Estoppel by convention - whether parole evidence of post-contractual conduct admissible to set up conventional estoppel - extent of requirement for "clear and unambiguous" convention where inconsistent with formal contract - whether detriment is a necessary element of conventional estoppel.

Insurance Contracts Act 1984 (Cth), ss 11, 39, 52, 53, 58, 59, 60, 62, 63 LEGISLATION CITED : Acts Interpretation Act 1901 (Cth), ss 15AA, 15AB

Aetna Life of Australia & New Zealand Ltd v ANZ Banking Group Ltd [1984] 2 NZLR 718; (1985) 3 ANZ Ins Cas 60-612 Ajayi v R T Briscoe (Nigeria) Ltd [1964] 3 All ER 556 Amalgamated Investment and Property Co Limited (in liq) v Texas Commerce International Bank Limited [1982] QB 84 Australian & New Zealand Banking Group Limited v Aetna Life Of Australia & New Zealand Limited (1983) 2 ANZ Ins Cas 60-518 Australian Co-operative Foods Ltd v Norco Co-operative Ltd (1999) 46 NSWLR 267 Australian Crime Commission v Gray [2003] NSWCA 318 Bankstown Football Club Ltd v CIC Insurance Limited (No 3) (NSWSC, Cole J, 16 December 1993, unreported, BC9302335) Boynton v Monarch Life Insurance Company of New Zealand Ltd [1973] 1 NZLR 606 Commonwealth of Australia v Verwayen (1990) 170 CLR 394 Con-Stan Industries Australia Pty Ltd v Norwich Winterthur Insurance (Australia) Ltd (1986) 160 CLR 226 Crabb v Arun District Council [1976] Ch 179 Craine v Colonial Mutual Fire Insurance Co Limited (1920) 28 CLR 305 Dabbs v Seaman (1925) 36 CLR 538 Ellery v Beck and The Royal Insurance Fire and General (NZ) Limited (1990) 6 ANZ Ins Cas 610045 Eslea Holdings Limited v Butts (1986) 6 NSWLR 175 Farmers Mutual Insurance Limited v Slavich (1995) 9 ANZ Ins Cas 61-295. Flinn v Flinn [1999] 3 VR 712 Foran v Wight (1989) 168 CLR 385 G. A. Lovell & Sons Pty Ltd v FML Assurance Ltd (1982) 2 ANZ Ins Cas 60-464 Galaxidis v Galaxidis [2004] NSWCA 111 Grundt v Great Boulder Proprietary Gold Mines Ltd (1937) 59 CLR 641 Hughes v Metropolitan Railway Co (1877) 2 App Cas 439 IW v City of Perth (1997) 191 CLR 1 Johnson Matthey Limited v A C Rochester Overseas Corp (1990) 23 NSWLR 190 Kingston v Keprose Pty Ltd (1987) 11 NSWLR 404 CASES CITED : Legione v Hateley (1983) 152 CLR 406 Low v Bouverie [1891] 3 Ch 82 McCormick v National Motor & Accident Insurance Union Limited (1934) 40 Com Cas 76 Menzies v Security & General Insurance Co (NZ) Limited (1990) 6 ANZ Ins Cas 61-029 MK & JA Roche Pty Limited v Metro Edgley Pty Limited [2005] NSWCA 39 New Zealand Shipping Co v Societe Des Ateliers et Chantiers de France [1919] AC 1; [1917] 2 KB 717 Newbon v City Mutual Life Assurance Society Limited (1935) 52 CLR 723 Newcastle City Council v GIO General Ltd (1997) 191 CLR 85 Newnham v Baker [1989] 1 QdR 393; (1988) 5 ANZ Ins Cas 60-885 R v Bolton; Ex parte Beane (1987) 162 CLR 514 Re Cafdawn Pty Limited and Waltons Stores (Interstate) Limited (Fed CA, Beaumont J, 28 March 1991, unreported) Rudi's Enterprises Pty Ltd v Jay (1987) 10 NSWLR 568 Sandra Investments Pty Ltd v Booth (1983) 153 CLR 153 SkyWest Aviation Pty Limited v Commonwealth of Australia (1995) 126 FLR 61 Smith v Associated Dominions Assurance Society Pty Ltd (in liq) (1956) 95 CLR 381 Spooner-Kenyon v Yorkshire-General Life Assurance Company Limited (1982) 2 ANZ Ins Cas 60-476 State Rail Authority of NSW v Heath Outdoor Pty Limited (1986) 7 NSWLR 170 Suttor v Gundowda Pty Limited (1950) 81 CLR 418 Thompson v Palmer (1933) 49 CLR 507 Turner v Metropolitan Life Assurance Company of New Zealand Ltd (1988) 5 ANZ Ins Cas 60-861 Waltons Stores (Interstate) Limited v Maher (1988) 164 CLR 387 Western Australian Insurance Company Limited v Dayton (1924) 35 CLR 355 Willcocks v New Zealand Insurance Co [1926] NZLR 805 Wimbush v Rothwell & Tinkler [1933] NZLR 1167 Woodhouse A C Israel Cocoa Limited SA v Nigerian Produce Manufacturing Co Limited [1971] 2 QB 23