Work out the general insurer's remedy for a relevant failure
Key facts
- Human involvement
- RedLawyer-led
- How AI is used
- From the insurer's file, extract whether a relevant failure is alleged, whether anyone says the insurer would have entered the contract for the same premium and on the same terms and conditions even if the failure had not occurred, and whether the failure is said to be fraudulent. Set out the two paths section 28 states: avoidance where the relevant failure was fraudulent, and reduction of liability where the insurer is not entitled to avoid or, being entitled, has not done so. Do not say the contract is avoided or that the claim is reduced. Do not apply the section to life insurance.
- What the lawyer must review
- Decide the remedy and write it. Read the definition of relevant failure in section 11, which was not the text opened for this task. Section 28 applies to a contract of general insurance and does not apply if the insurer would have entered the same contract anyway. If the relevant failure was fraudulent, the insurer may avoid the contract. Otherwise, liability for the claim is reduced to the amount that would place the insurer where it would have been if the failure had not occurred. Confirm the section against the current compilation before relying on it for a consumer insurance contract.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | Supporting preparation only. From the insurer's file, extract whether a relevant failure is alleged, whether anyone says the insurer would have entered the contract for the same premium and on the same terms and conditions even if the failure had not occurred, and whether the failure is said to be fraudulent. Set out the two paths section 28 states: avoidance where the relevant failure was fraudulent, and reduction of liability where the insurer is not entitled to avoid or, being entitled, has not done so. Do not say the contract is avoided or that the claim is reduced. Do not apply the section to life insurance. The tool writes nothing into the document. Substantive advice, judgement and any restricted content remain with the responsible human. |
| Lawyer | Perform the substantive analysis and decisions. Independently check any permitted supporting work and approve the exact output for its intended use. |
Checklist
- Do not treat a claims-stage allegation as a relevant failure until the lawyer has read the section 11 definition.
- Record, as a fact on the file, whether the insurer says it would have written the same contract anyway.
- Keep fraudulent avoidance under subsection (2) separate from reduction under subsection (3).
- The lawyer writes any avoidance or the reduced amount. The tool does not.
Sources
- Insurance Contracts Act 1984 (Cth), section 28 · 2026-10-22
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.