Fogarty v CGU Insurance Ltd [2016] ACTCA 62

The ACT Supreme Court has rejected an insured’s claim for damages and interest against his building and contents insurer for breach of duty of utmost good faith alleged to have arisen as a result of the election by the insurer as to the method of settlement of the claim. The decision confirms that, subject to the policy wording, the insurer retains the right to elect how it wishes to resolve the claim as long as its election is not unreasonable.