New South Wales Consolidated Acts

INSURANCE ACT 1902 - SECT 17A

17A Rights of insurer to challenge evidence where false claim alleged

(1) If:

(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

(b) the person’s insurer has given the plaintiff particulars alleging that the claim has not been made in good faith,

the insurer may apply to the court to be joined as a party to the proceedings.

(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.

(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:

(a) any other claim in which the witness was involved, and

(b) the credibility of the witness.

(4) If the court gives leave to do so, the insurer may:

(a) cross-examine the witness, and

(b) lead other evidence to refute the evidence given by the witness,

as to any or all of the matters as to which the insurer might have examined the witness under subsection (3).

(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.

(6) This section applies despite section 53 of the Evidence Act 1898 .

(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.

(8) This section does not apply to proceedings in respect of a claim under the Motor Accidents Act 1988 or under the Motor Accidents Compensation Act 1999 .

(9) This section applies to civil proceedings commenced before or after the commencement of this section.