---
title: "Work out the general insurer's remedy for a relevant failure"
url: "https://ailawframework.com/practice/insurance-law/work-out-the-general-insurer-s-remedy-for-a-relevant-failure"
type: "task"
site: "AI Law Framework"
id: "A22-MA20261022-8"
practice_area: "Insurance Law"
tier: "red"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Work out the general insurer's remedy for a relevant failure

> 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…

Canonical page: https://ailawframework.com/practice/insurance-law/work-out-the-general-insurer-s-remedy-for-a-relevant-failure  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Insurance Law](https://ailawframework.com/practice/insurance-law.md) |
| Human involvement | Red: Lawyer writes; AI may check, clarify or collect data |
| 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 / versions | 1 jurisdiction versions below |

## Checking plan

**Lawyer-led judgement**

The lawyer makes the substantive assessment. Any permitted AI assistance remains supporting work with its own checks.

- What the AI does: 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 does: 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.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.
- Restriction: The lawyer makes the substantive assessment. Any permitted AI assistance remains supporting work with its own checks.

## Checks the lawyer makes

1. Do not treat a claims-stage allegation as a relevant failure until the lawyer has read the section 11 definition.
2. Record, as a fact on the file, whether the insurer says it would have written the same contract anyway.
3. Keep fraudulent avoidance under subsection (2) separate from reduction under subsection (3).
4. The lawyer writes any avoidance or the reduced amount. The tool does not.

## Notes

- 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.

## Sources

- [Insurance Contracts Act 1984 (Cth), section 28](https://classic.austlii.edu.au/au/legis/cth/consol_act/ica1984220/s28.html) (checked 2026-10-22)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/insurance-law/work-out-the-general-insurer-s-remedy-for-a-relevant-failure/united-states.md) | Red |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*