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The smoke clears and circumstantial evidence prevails

The New South Wales Court of Appeal in Sharma v Insurance Australia Ltd (t/as NRMA Insurance) recently upheld a decision of the District Court where an insurer successfully defended its decision to deny coverage following a deliberately lit fire at the insured’s rental property. This decision highlights how insurers can rely on strong circumstantial evidence when seeking to rely on policy exclusions or when alleging that a fraudulent claim has been submitted by the insured.

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