{"id":"nsw:act-1902-049","name":"Insurance Act 1902","slug":"insurance-act-1902","collection":"act","jurisdiction":"nsw","status":"in_force","isInForce":true,"actNumber":"49 of 1902","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":112126,"registerId":"nsw-act-1902-049-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"# Part 1 Preliminary\n\nPart 1 Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name of Act","content":"#### 1 Name of Act\n\n1 Name of Act\n\n> This Act may be cited as the [Insurance Act 1902](/view/html/inforce/current/act-1902-049).\n> \n> **s 1:** Am 1938 No 21, sec 2 (b); 1974 No 105, sec 6 (a); 1999 No 31, Sch 5.51.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Repeals","content":"#### 2 Repeals\n\n2 Repeals\n\n> The Acts mentioned in Schedule 1 are, to the extent therein expressed, hereby repealed.\n> \n> **s 2:** Am 1995 No 99, Sch 4.","sortOrder":2},{"sectionNumber":"Part 2","sectionType":"part","heading":null,"content":"# Part 2\n\nParts 2, 3\n\n3–13 (Repealed)\n\n**pt 2:** Rep 2009 No 56, Sch 5.\n\n**s 3:** Am 1999 No 4, Sch 2.14 \\[1\\]. Rep 2009 No 56, Sch 5.\n\n**s 4:** Am 1917 No 23, sec 2. Rep 2009 No 56, Sch 5.\n\n**ss 5–7:** Rep 2009 No 56, Sch 5.\n\n**s 8:** Am 1999 No 4, Sch 2.14 \\[2\\] \\[3\\]. Rep 2009 No 56, Sch 5.\n\n**s 9:** Am 1937 No 35, Second Sch. Rep 2009 No 56, Sch 5.\n\n**s 10:** Am 1999 No 4, Sch 2.14 \\[4\\]. Rep 2009 No 56, Sch 5.\n\n**s 10A:** Ins 1938 No 21, sec 2 (a). Rep 2009 No 56, Sch 5.\n\n**pt 3 (ss 11–13):** Rep 2009 No 56, Sch 5.","sortOrder":3},{"sectionNumber":"Part 4","sectionType":"part","heading":"Fire insurance policies assignment","content":"# Part 4 Fire insurance policies assignment\n\nPart 4 Fire insurance policies assignment","sortOrder":4},{"sectionNumber":"14","sectionType":"section","heading":"Assignment of fire policy","content":"#### 14 Assignment of fire policy\n\n14 Assignment of fire policy\n\n> > (1) It shall be lawful to make an assignment of a fire policy by endorsement on such policy with the consent in writing of the company or person issuing the same endorsed on such policy.\n> \n> > (2) Such assignment shall be in the words or to the effect following, namely, “I, AB, of, etc, do hereby assign unto CD the within policy of insurance on \\[*here describe property insured, etc*\\] In witness whereof, etc”.","sortOrder":5},{"sectionNumber":"15","sectionType":"section","heading":"Assignee may sue in his or her own name","content":"#### 15 Assignee may sue in his or her own name\n\n15 Assignee may sue in his or her own name\n\n> Whenever a fire policy has been assigned in such manner and with such consent as aforesaid so as to pass the beneficial interest in such policy to any person entitled to the property thereby insured the assignee of such policy shall be entitled to sue thereon in the assignee’s own name. The defendant in any action shall be entitled to make any defence which the defendant would have been entitled to make if the said action had been brought before such assignment in the name of the person by whom or on whose account the policy sued upon was effected.","sortOrder":6},{"sectionNumber":"16","sectionType":"section","heading":"Definition","content":"#### 16 Definition\n\n16 Definition\n\n> For the purposes and in the construction of sections 14 and 15, the expression fire policy means any instrument by which the payment of money is assured or secured on the happening of any of the contingencies in the nature of loss or damage to property by fire named in such instrument.","sortOrder":7},{"sectionNumber":"Part 5","sectionType":"part","heading":"Re-Insurance—marine risks","content":"# Part 5 Re-Insurance—marine risks\n\nPart 5 Re-Insurance—marine risks","sortOrder":8},{"sectionNumber":"17","sectionType":"section","heading":"Re-insurance of marine risks may be made","content":"#### 17 Re-insurance of marine risks may be made\n\n17 Re-insurance of marine risks may be made\n\n> Notwithstanding anything contained in the Imperial Act passed in the nineteenth year of the reign of King George the Second, chapter thirty-seven, it shall be lawful to make re-insurance upon any ship or vessel, or upon any goods, merchandise, or other property on board any ship or vessel, or upon the freight of any ship or vessel, or upon any other interest in or relating to any ship or vessel which may lawfully be insured.\n> \n> Editorial note—\n> \n> See [Marine Insurance Act 1909](http://www.legislation.gov.au/) (Commonwealth).","sortOrder":9},{"sectionNumber":"Part 5A","sectionType":"part","heading":"Procedural and evidentiary provisions","content":"# Part 5A Procedural and evidentiary provisions\n\nPart 5A Procedural and evidentiary provisions\n\n**pt 5A:** Ins 1991 No 46, sec 3.","sortOrder":10},{"sectionNumber":"17A","sectionType":"section","heading":"Rights of insurer to challenge evidence where false claim alleged","content":"#### 17A Rights of insurer to challenge evidence where false claim alleged\n\n17A Rights of insurer to challenge evidence where false claim alleged\n\n> > (1) If:\n> > \n> > > (a) civil proceedings have been commenced against a person in respect of a claim (being a claim in respect of which the person is or may be indemnified under a contract of insurance), and\n> > \n> > > (b) the person’s insurer has given the plaintiff particulars alleging that the claim has not been made in good faith,\n> > \n> > the insurer may apply to the court to be joined as a party to the proceedings.\n> \n> > (2) If the court gives the insurer leave to be joined as a party, the insurer may call as a witness any person (including a defendant) able to give evidence relating to the occurrence out of which the claim arose or evidence of other matters relating to the claim.\n> \n> > (3) The insurer may examine the witness as to the occurrence out of which the claim arose and may also, with the leave of the court, examine the witness as to:\n> > \n> > > (a) any other claim in which the witness was involved, and\n> > \n> > > (b) the credibility of the witness.\n> \n> > (4) If the court gives leave to do so, the insurer may:\n> > \n> > > (a) cross-examine the witness, and\n> > \n> > > (b) lead other evidence to refute the evidence given by the witness,\n> > \n> > as to any or all of the matters as to which the insurer might have examined the witness under subsection (3).\n> \n> > (5) Any right to examine or cross-examine a witness arising under this section is additional to and not in diminution of any right to examine or cross-examine the person arising under any other law.\n> \n> > (6) This section applies despite section 53 of the [Evidence Act 1898](/view/pdf/asmade/act-1898-11).\n> \n> > (7) This section applies to an insurer as a defendant in relation to a claim (being a claim referred to in subsection (1)) in the same way as this section applies to an insurer who is granted leave to be joined as a party.\n> \n> > (8) This section does not apply to proceedings in respect of a claim under the [Motor Accidents Act 1988](/view/html/inforce/current/act-1988-102), the [Motor Accidents Compensation Act 1999](/view/html/inforce/current/act-1999-041) or the [Motor Accident Injuries Act 2017](/view/html/inforce/current/act-2017-010).\n> \n> > (9) This section applies to civil proceedings commenced before or after the commencement of this section.\n> \n> **s 17A:** Ins 1991 No 46, sec 3. Am 1999 No 41, Sch 4.6; 2017 No 10, Sch 5.6.","sortOrder":11},{"sectionNumber":"Part 6","sectionType":"part","heading":"Miscellaneous","content":"# Part 6 Miscellaneous\n\nPart 6 Miscellaneous\n\n**pt 6:** Ins 1974 No 105, sec 6 (b).","sortOrder":12},{"sectionNumber":"18","sectionType":"section","heading":"Powers of court in relation to insurance contracts","content":"#### 18 Powers of court in relation to insurance contracts\n\n18 Powers of court in relation to insurance contracts\n\n> > (1) In any proceedings taken in a court in respect of a difference or dispute arising out of a contract of insurance, if it appears to the court that a failure by the insured to observe or perform a term or condition of the contract of insurance may reasonably be excused on the ground that the insurer was not prejudiced by the failure, the court may order that the failure be excused.\n> \n> > (2) Where an order of the nature referred to in subsection (1) has been made, the rights and liabilities of all persons in respect of the contract of insurance concerned shall be determined as if the failure the subject of the order had not occurred.\n> \n> **s 18:** Ins 1974 No 105, sec 6 (b).","sortOrder":13},{"sectionNumber":"18A","sectionType":"section","heading":"Misrepresentation and non-disclosure","content":"#### 18A Misrepresentation and non-disclosure\n\n18A Misrepresentation and non-disclosure\n\n> A contract of insurance that is entered into, reinstated or renewed after the commencement of this section is not void, voidable or otherwise rendered unenforceable:\n> \n> > (a) by reason only of a false or misleading statement made in or in connection with the contract or a proposal, offer or document that led to the entering into, reinstating or renewing of the contract unless the statement was material to the insurer in relation to the contract of insurance and:\n> > \n> > > (i) the statement was fraudulent, or\n> > \n> > > (ii) the insured knew or a reasonable person in the insured’s circumstances ought to have known that the statement was material to the insurer in relation to the contract of insurance, or\n> \n> > (b) by reason only of an omission of matter from the contract or a proposal, offer or document that led to the entering into, reinstating or renewing of the contract unless the matter omitted was material to the insurer in relation to the contract of insurance and:\n> > \n> > > (i) the omission was deliberate, or\n> > \n> > > (ii) the insured knew or a reasonable person in the insured’s circumstances ought to have known that matter material to the insurer in relation to the contract of insurance had been omitted.\n> \n> **s 18A:** Ins 1983 No 97, Sch 1 (1).","sortOrder":14},{"sectionNumber":"18B","sectionType":"section","heading":"Limitation on exclusion clauses","content":"#### 18B Limitation on exclusion clauses\n\n18B Limitation on exclusion clauses\n\n> > (1) Where by or under the provisions of a contract of insurance entered into, reinstated or renewed after the commencement of this section:\n> > \n> > > (a) the circumstances in which the insurer is bound to indemnify the insured are so defined as to exclude or limit the liability of the insurer to indemnify the insured on the happening of particular events or on the existence of particular circumstances, and\n> > \n> > > (b) the liability of the insurer has been so defined because the happening of those events or the existence of those circumstances was in the view of the insurer likely to increase the risk of loss occurring,\n> > \n> > the insured shall not be disentitled to be indemnified by the insurer by reason only of those provisions of the contract of insurance if, on the balance of probability, the loss in respect of which the insured seeks to be indemnified was not caused or contributed to by the happening of those events or the existence of those circumstances, unless in all the circumstances it is not reasonable for the insurer to be bound to indemnify the insured.\n> \n> > (2) The onus of proving for the purposes of subsection (1) that, on the balance of probability, loss in respect of which an insured seeks to be indemnified was not caused or contributed to by the happening of particular events or the existence of particular circumstances is on the insured.\n> \n> **s 18B:** Ins 1983 No 97, Sch 1 (1).","sortOrder":15},{"sectionNumber":"19","sectionType":"section","heading":"Insured not bound to arbitrate","content":"#### 19 Insured not bound to arbitrate\n\n19 Insured not bound to arbitrate\n\n> A provision in a contract of insurance or other contract or agreement, being a provision with respect to the submission to arbitration of any matter arising out of the contract of insurance, does not bind the insured except where the provision is contained in a contract or agreement, entered into after a difference or dispute has arisen between the insurer and the insured, providing for the submission to arbitration of that difference or dispute.\n> \n> **s 19:** Ins 1974 No 105, sec 6 (b).","sortOrder":16},{"sectionNumber":"20","sectionType":"section","heading":"Repairs to motor vehicle carried out by insurer","content":"#### 20 Repairs to motor vehicle carried out by insurer\n\n20 Repairs to motor vehicle carried out by insurer\n\n> In any proceedings arising out of a difference or dispute with respect to:\n> \n> > (a) the materials used in carrying out repairs, or\n> \n> > (b) the manner of carrying out repairs,\n> \n> to a motor vehicle, which repairs were carried out by the insurer under a policy of insurance relating to that motor vehicle or by a company that is a subsidiary or by a related body corporate within the meaning of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth of the insurer, the onus lies upon the insurer of proving that the materials used were proper materials or that the repairs were properly carried out, as the case may be, notwithstanding any acknowledgment as to the materials or the manner of carrying out the repairs given by the insured.\n> \n> **s 20:** Ins 1974 No 105, sec 6 (b). Am 1986 No 16, Sch 23; 2001 No 34, Sch 2.27.","sortOrder":17},{"sectionNumber":"21","sectionType":"section","heading":"Exemption","content":"#### 21 Exemption\n\n21 Exemption\n\n> > (1) The Governor may make regulations not inconsistent with this Act exempting, subject to such terms and conditions as are specified in the regulations:\n> > \n> > > (a) persons belonging to any class of persons, or\n> > \n> > > (b) contracts of insurance included in any class of contracts of insurance,\n> > \n> > specified in the regulations from all or any of the provisions of this Part as may be so specified in respect of that class of persons or that class of contracts of insurance.\n> \n> > (2) Without limiting subsection (1), sections 18A and 18B do not apply to or in respect of:\n> > \n> > > (a) contracts of marine insurance,\n> > \n> > > (b) contracts of life insurance, or\n> > \n> > > (c) those provisions of contracts of insurance to or in respect of which the [Motor Vehicles (Third Party Insurance) Act 1942](/view/html/inforce/current/act-1942-015), the [Workers Compensation Act 1987](/view/html/inforce/current/act-1987-070), Part 4.4 of the [Legal Profession Uniform Law (NSW)](/view/html/inforce/current/act-2014-16a) or Part 8 of the [Legal Profession Uniform Law Application Act 2014](/view/html/inforce/current/act-2014-016), applies.\n> \n> **s 21:** Ins 1974 No 105, sec 6 (b). Am 1983 No 97, Sch 1 (2); 1987 No 79, Sch 1; 1987 No 111, Sch 1; 2005 No 98, Sch 3.33; 2015 No 7, Sch 2.23.","sortOrder":18},{"sectionNumber":"22","sectionType":"section","heading":"Savings and transitional provisions","content":"#### 22 Savings and transitional provisions\n\n22 Savings and transitional provisions\n\n> Schedule 2 has effect.\n> \n> **s 22:** Ins 1995 No 99, Sch 4.","sortOrder":19},{"sectionNumber":"Schedule 1","sectionType":"schedule","heading":"Repeals","content":"# Schedule 1 Repeals\n\nSchedule 1 Repeals\n\n**sch 1, hdg:** Subst 1995 No 99, Sch 4.\n\n| Reference to Act | Title or short title | Extent of repeal |\n| 26 Vic No 13 | Life Assurance Encouragement Act of 1862 | The whole Act |\n| 29 Vic No 19 | An Act to repeal the prohibition on reinsurance of Marine Risks | The whole Act |\n| 51 Vic No 13 | Assignees of Fire Insurance Policies Enabling Act 1887 | The whole Act |\n| 56 Vic No 11 | Married Women’s Property Act 1893 | The unrepealed portion of s 13 and s 14 |\n| 59 Vic No 13 | Lost Policies Act of 1895 | The whole Act |","sortOrder":20},{"sectionNumber":"Schedule 2","sectionType":"schedule","heading":"Savings and transitional provisions","content":"# Schedule 2 Savings and transitional provisions\n\nSchedule 2 Savings and transitional provisions\n\n(Section 22)\n\n**sch 2:** Ins 1995 No 99, Sch 4. Am 1999 No 4, Sch 2.14 \\[5\\].","sortOrder":21},{"sectionNumber":"3","sectionType":"section","heading":"Life policies","content":"#### 3 Life policies\n\n3 Life policies\n\n> The amendments made to this Act by the [Property (Relationships) Legislation Amendment Act 1999](/view/html/repealed/current/act-1999-004) have no effect in relation to the estate of any person who died before those amendments took effect.","sortOrder":26}],"analysis":{"summary":{"complexity_score":2,"scope_assessment":{"changed":true,"description":"The Act's name change — from 'Life, Fire, and Marine Insurance Act 1902' to simply 'Insurance Act 1902' — strongly suggests its scope was broadened or restructured over time. The removal of the specific insurance types (life, fire, marine) from the title implies the Act may have been generalised or had some provisions removed as federal regulation absorbed much of the insurance regulatory space. The precise nature of scope changes cannot be fully assessed without the actual provisions."},"complexity_factors":["Only metadata and administrative information is provided — no substantive legal provisions are available for analysis","The Act's original name ('Life, Fire, and Marine Insurance Act 1902') suggests it historically covered multiple insurance types, which could involve complexity","The interplay between this old state Act and modern Commonwealth insurance legislation could create complexity in practice, but cannot be assessed from the text provided","Multiple amendments over time (2001, 2005, 2009, 2015, 2017) suggest the Act has evolved, but the nature of those changes is unknown from this document"],"plain_english_summary":"## Insurance Act 1902 (NSW)\n\n**What is this?**\nThis is a very old New South Wales law — originally passed in 1902 — that relates to insurance. It was previously called the *Life, Fire, and Marine Insurance Act 1902*, which gives a clue about its original purpose: regulating life insurance, fire insurance, and marine (shipping) insurance.\n\n**What does it actually contain?**\nUnfortunately, the document provided contains only the *metadata and administrative information* about this Act (things like when it was last updated, who the responsible Minister is, and version history) — **not the actual legal provisions (rules) themselves**. The substantive content of the Act is not included here.\n\n**What we do know:**\n- It is a **NSW (New South Wales) state law**, administered by the **Attorney General**\n- It has been amended several times since 2001, with the current version in force from **1 December 2017**\n- It has survived for over **120 years**, suggesting it still serves some residual legal function, even though most modern insurance regulation in Australia is handled at the **federal level** (e.g., under the Commonwealth's *Insurance Act 1973* and *Life Insurance Act 1995*)\n\n**Who does it affect?**\nWithout the actual text, it is difficult to say with certainty. Historically, it would have affected insurance companies operating in NSW and their customers. Today, its practical scope is likely **narrow**, as federal legislation dominates the insurance space.\n\n**Why does it still exist?**\nOlder state Acts like this are often retained to cover gaps or specific matters not picked up by federal law, or for historical/transitional reasons."},"issue_detection":{"absurdities":[],"contradictions":[]},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":true,"description":"The legislation has shrunk dramatically from its original scope. Parts 2 and 3 (sections 3-13) were entirely repealed in 2009, suggesting the Act originally covered much broader insurance regulation. What remains is a patchwork of specific consumer protections (added in 1974, 1983), procedural rules for fraud cases (added 1991), and historic provisions on fire policy assignment and marine reinsurance. The modern Act bears little resemblance to its 1902 origins, having been progressively stripped back as insurance regulation moved to Commonwealth level (particularly since 1973 when the Insurance Act 1973 (Cth) took effect)."},"complexity_factors":["Substantial portions repealed (Parts 2 and 3, sections 3-13), leaving a fragmented structure","Multiple amendment history notes throughout (dating back to 1902, with significant amendments in 1974, 1983, 1991, 1995, 1999, 2009, 2015, 2017)","Nested conditional logic in sections 18A and 18B (multiple 'unless' clauses with sub-conditions)","Cross-references to other legislation including Evidence Act 1898, Motor Accidents Act 1988, Motor Accidents Compensation Act 1999, Motor Accident Injuries Act 2017, Corporations Act 2001, Motor Vehicles (Third Party Insurance) Act 1942, Workers Compensation Act 1987, and Legal Profession Uniform Law","Transitional provisions in Schedule 2 with retrospective operation clauses","Specific evidentiary burdens shifting between parties (sections 18B(2) and 20)"],"plain_english_summary":"This is a New South Wales law that sets out basic rules for insurance contracts and related procedures. It covers four main areas:\n\n**1. Transferring fire insurance policies (Part 4)**\n- Allows someone to transfer (assign) their fire insurance policy to another person, provided the insurer agrees in writing\n- The new policyholder can sue the insurer directly if there's a claim\n\n**2. Marine reinsurance (Part 5)**\n- Confirms that reinsuring ships and cargo is legal (overriding an old British law that banned this)\n\n**3. Court procedures for disputed claims (Part 5A)**\n- Lets insurers join court cases where they suspect fraud\n- Gives insurers special rights to question witnesses and challenge evidence when false claims are alleged\n- Doesn't apply to motor accident claims\n\n**4. Protections for insurance customers (Part 6)**\n- **Section 18**: Courts can excuse insured people for minor breaches of their policy if the insurer wasn't actually harmed\n- **Section 18A**: Insurers can't cancel policies just because of innocent mistakes or omissions unless they were important (material) and the insured knew or should have known they mattered\n- **Section 18B**: Insurers can't refuse to pay claims based on exclusion clauses if the excluded event didn't actually cause the loss\n- **Section 19**: Insurers can't force customers into arbitration unless the dispute has already arisen and both parties agree\n- **Section 20**: If an insurer repairs your car and does a bad job, the insurer must prove the repairs were proper (not the customer)\n\nThe Act also repeals several old 19th-century laws and includes savings provisions to manage the transition between old and new rules."},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"The Act's scope has been narrowed and restructured over time by repeal and amendment. Large portions formerly in Parts 2 and 3 have been repealed (see pt 2 repeal notes). The text includes later insertions that alter substantive rights and procedures — for example, s 17A (procedural/evidentiary rights for insurers) was inserted (Ins 1991 No 46, s 3) and ss 18A and 18B (misrepresentation/non‑disclosure and limits on exclusion clauses) were introduced by the 1983 amending Act (see Schedule/notes and Schedule 2 transitional clause 2). Schedule 1 lists older Acts repealed in whole. The Act also expressly limits the application of ss 18A and 18B to exclude marine and life insurance and certain statutory schemes (s 21(2)), and empowers the Governor to exempt classes by regulation (s 21(1)). These changes and exclusions mean the present Act applies to a narrower, modified set of insurance issues than earlier versions did."},"complexity_factors":["Multiple short, targeted provisions across distinct subjects (assignment, marine reinsurance, evidence, contract terms), requiring readers to switch contexts","Cross‑references to other Commonwealth Acts and to historic Imperial legislation (e.g. Evidence Act 1898, Corporations Act 2001, Motor Vehicles (Third Party Insurance) Act 1942)","Several later insertions and amendments with commencement and transitional savings (e.g. ss 17A, 18A, 18B and Schedule 2), requiring attention to temporal application","Discretionary powers (court leave for insurer joinder and examination under s 17A; Governor’s power to make exemptions under s 21) that create case‑by‑case uncertainty","Allocation of evidentiary onuses that vary by context (insured bears onus under s 18B(2); insurer bears onus about repairs under s 20), affecting litigation strategy","Multiple repealed sections and schedules documenting repeals (pt 2 repeals; Schedule 1), which complicate understanding of the Act’s present scope"],"plain_english_summary":"What this law does, in plain English\n\n- It sets out a handful of specific rules about insurance contracts and related procedures. The rules are sectoral and targeted rather than a single comprehensive code.\n\nKey mechanical changes and how they operate\n\n- Assignment of fire insurance: A fire insurance policy can be assigned (transferred) by a written endorsement on the policy, but only with the insurer’s written consent endorsed on the policy (s 14). When such an assignment passes the beneficial interest, the assignee can sue on the policy in their own name; the defendant may rely on any defence that would have been available if the action had been brought before the assignment (s 15). The term “fire policy” is defined for these rules (s 16).\n\n- Re‑insurance of marine risks: Re‑insurance of marine risks is expressly permitted despite an older Imperial Act that had different rules (s 17).\n\n- Procedural and evidentiary rights for insurers: If civil proceedings are brought against a person for a claim that may be covered by insurance and the insurer alleges the claim was not made in good faith, the insurer may apply to be joined to the proceedings (s 17A(1)). If the court allows joinder, the insurer may call witnesses about the event and, with leave, question witnesses about other claims and credibility and cross‑examine or lead evidence to refute testimony (s 17A(2)–(4)). These rights are additional to any existing examination rights and apply whether the insurer seeks joinder or is already a defendant (s 17A(5), (7)). The section also overrides a provision of the Evidence Act 1898 for these matters (s 17A(6)).\n\n- Judicial power to excuse policy breaches: In disputes arising from an insurance contract, a court may excuse an insured’s failure to observe a contract term if it finds the insurer was not prejudiced by that failure; the parties’ rights are then treated as if the failure had not occurred (s 18).\n\n- Misrepresentation and non‑disclosure rules: For insurance contracts entered into, reinstated or renewed after the commencement of this provision, a contract is not automatically void or unenforceable just because of a false or misleading statement or an omission. Voidability requires that the false statement or omission was material to the insurer and either fraudulent or that the insured knew (or a reasonable person in the insured’s circumstances ought to have known) the matter was material (s 18A).\n\n- Limits on exclusion clauses: If a policy excludes or limits liability for particular events or circumstances because the insurer considered those matters likely to increase risk, the insured is not automatically disentitled to indemnity if, on the balance of probability, the loss was not caused or contributed to by the excluded events or circumstances — unless it would be unreasonable to require the insurer to indemnify (s 18B(1)). The insured carries the onus of proving lack of causal connection (s 18B(2)).\n\n- Arbitration clauses: An insured is not bound by a clause that sends disputes to arbitration unless that arbitration clause was agreed after a dispute had already arisen (s 19).\n\n- Motor vehicle repairs: Where an insurer (or its related company) carries out repairs to a motor vehicle, and a dispute arises about materials or workmanship, the insurer bears the onus of proving the repairs and materials were proper even if the insured previously acknowledged them (s 20).\n\n- Regulatory exemptions and scope limits: The Governor may make regulations exempting specified classes of persons or contracts from any provision of Part 6, subject to conditions (s 21(1)). Sections 18A and 18B do not apply to marine insurance, life insurance, or specified statutory insurance schemes listed in s 21(2).\n\nWho pays, who decides, and how behaviour changes (mechanisms and incentives)\n\n- Who benefits and who bears costs: The Act grants insurers specific procedural tools (right to seek joinder and to examine witnesses — s 17A) and imposes evidentiary burdens on both sides in specific contexts (insurer bears onus to prove repairs were proper — s 20; insured bears onus to prove lack of causal connection to excluded events — s 18B(2)). These are concrete legal-transaction advantages and burdens that change litigation strategy and evidence allocation.\n\n- Who decides: Courts decide whether to excuse contractual non‑observance (s 18), whether an insurer may be joined and permitted to examine or cross-examine witnesses (s 17A), and whether it is reasonable for an insurer to be bound to indemnify where exclusions apply (s 18B(1)). The Governor may decide to exempt classes from provisions by regulation (s 21).\n\n- Behavioural impacts and incentives: The insurer’s statutory right to seek joinder and to question witnesses (s 17A) creates an incentive for insurers to engage actively in defending against suspected fraudulent or non‑bona fide claims; it also creates an incentive for claimants and defendants to anticipate insurer participation. The consent requirement for assignment of fire policies (s 14) gives insurers a veto over transfers of policies, which affects secondary-market transfers of those policies. Limits on voiding contracts for misrepresentation or omission (s 18A) increase contract stability by raising the threshold for voidability to materiality plus fraud or knowledge, which may reduce insurers’ ability to avoid claims on the basis of non‑material statements.\n\nCosts, trade‑offs and implementation risks\n\n- Compliance and proof burdens: Insurers must show fraud or the insured’s knowledge/constructive knowledge to rely on misrepresentation/non‑disclosure to void a contract (s 18A). Courts must balance prejudice to insurers when asked to excuse failures (s 18), a fact‑sensitive exercise that may increase litigation over mixed questions of fact and prejudice.\n\n- Administrative and litigation costs: Allowing insurers to join and to examine witnesses (s 17A) can increase preparatory work and length of proceedings. Conversely, the section may reduce improper claims if it enables effective testing of credibility; the statute does not quantify those effects.\n\n- Executive discretion and scope variability: The Governor’s power to make exemptions by regulation (s 21) delegates scope decisions to the executive, producing potential variation by regulation that stakeholders must monitor.\n\n- Interaction and substitution risks: The rules restricting when misrepresentation or omission voids a contract (s 18A) and the limits on exclusion clauses (s 18B) may change underwriting and pricing practices because insurers must assess whether particular policy terms will be enforceable in court.\n\nWhere the Act changes private contracting freedom and market effects (light market‑oriented lens)\n\n- Contract freedom: The Act preserves parties’ ability to include exclusion clauses and arbitration clauses but constrains enforceability in specified circumstances (s 19, s 18B, s 18A). Arbitration agreements concluded after a dispute are enforceable (s 19), but pre‑dispute arbitration clauses cannot be imposed on the insured.\n\n- Costs to private parties and firms: The Act reallocates evidentiary burdens in some areas (s 20, s 18B(2)), which affects litigation costs and risk allocation between insurers and insureds. Insurer joinder rights (s 17A) concentrate procedural advantage with insurers.\n\n- Ownership and secondary markets: Assignment rules for fire policies (s 14–15) permit transfer but require insurer consent, which constrains transferability in practice.\n\nImplementation, transitional and historical notes drawn from the text\n\n- Several earlier parts and sections have been repealed (notably ss 3–13 and other historically listed provisions) and the Act contains schedules listing repeals and transitional provisions (pt 2 notes; Schedule 1; Schedule 2; see the headings and repeal notes included in the text). Specific amendments introduced the procedural rights (s 17A inserted 1991) and the misrepresentation/non‑disclosure and exclusion‑clause rules (s 18A, s 18B enacted 1983); the schedules preserve transitional saving rules (Schedule 2, cl 2). The Act also explicitly excludes its s 18A and s 18B from applying to marine and life insurance and certain statutory schemes (s 21(2))."}},"importantCases":[],"_links":{"self":"/api/acts/insurance-act-1902","history":"/api/acts/insurance-act-1902/history","analysis":"/api/acts/insurance-act-1902/analysis","conflicts":"/api/acts/insurance-act-1902/conflicts","importantCases":"/api/acts/insurance-act-1902/important-cases","documents":"/api/acts/insurance-act-1902/documents"}}