Albion Insurance Co Ltd v Government Insurance Office (NSW); 31 Oct 1969

References: [1969] HCA 55, (1969) 121 CLR 342
Links: Austlii
Coram: Barwick CJ, McTiernan, Kitto, Menzies and Windeyer J.
Ratio:(High Court of Australia) Insurance – Contribution between insurers – Identity of risk insured – Loss covered by two policies – General nature and purpose of policies different – Extent of rights and liabilities created under policies different – Workers’ compensation policy with indemnity extended to include employer’s common law liability – Motor vehicle third party policy covering employer’s liability to employee arising out of use of motor vehicle.
Kitto J said: ‘ ‘a principle applicable at law no less than in equity, is that persons who are under co-ordinate liabilities to make good one loss (eg sureties liable to make good a failure to pay the one debt) must share the burden pro rata’: the object being, as Hamilton J stated in American Surety Co of New York v Wrightson (1910) 103 LT 663: ‘to put people who have commonly guaranteed or commonly insured in the same position as if the principal creditor or the assured had pursued his remedies rateably among them instead of doing as he is entitled to do, exhausting them to suit himself against one or other of them.”
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Last Update: 30-Jun-16
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