Commonwealth Consolidated Acts

INSURANCE CONTRACTS ACT 1984 - SECT 67

             (1)  Where an insurer, in exercising a right of subrogation in respect of a loss, recovers an amount, the insured may recover that amount from the insurer.

             (2)  Unless the contract expressly provides otherwise, the insured may not recover under subsection (1):

                     (a)  an amount greater than the amount (if any) by which the amount recovered by the insurer exceeds the amount paid to the insured by the insurer in relation to the loss; or

                     (b)  an amount that, together with the amount paid to the insured under the contract, is greater than the amount of the insured's loss.

             (3)  The rights of an insured and insurer under the preceding provisions of this section are subject to any agreement made between them after the loss occurred.

             (4)  A reference in this section to an amount recovered by an insurer shall be construed as a reference to the amount so recovered less the administrative and legal costs incurred in connection with the recovery of the amount.