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Utmost Good Faith in Claims Handling

Sharma v Insurance Australia Limited t/as NRMA Insurance [2017] NSWCA 55

The New South Wales Court of Appeal recently considered the duty of utmost good faith set out in section 13 of the Insurance Contracts Act 1984 (Cth). The decision confirms that the courts will take a wide view of the reciprocal obligations imported by the duty of utmost good faith owed by parties to an insurance contract. In this instance the focus was on an insurer’s obligation to respond to a claim for indemnity in a timely manner. 

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