The High Court has ruled against QBE in a high-profile workers’ compensation case, leaving the insurer liable for more than $350,000.

The case centred on a lost workers’ compensation policy belonging to asbestos victim Angus Stewart, who died in 1997.

Although all parties agreed the policy originally existed, the fact it was lost meant neither side was aware of its limits.

QBE and asbestos product manufacturer Wallaby Grip earlier challenged a NSW Dust Diseases Tribunal directive to pay $350,000 to Mr Stewart’s widow, Irene.

The case reached the High Court after a successful NSW Court of Appeal challenge, which determined a liability of just $40,000 in line with the statutory minimum.

But the High Court overturned that appeal, ruling QBE failed to fulfil its burden of proof in showing what limit, if any, was placed on its indemnity liability.

Law firm Clayton Utz says the decision is consistent with general insurance principles which place the onus on the insurer to prove an exclusion or other restriction.

Insurance Partner Fred Hawke told insuranceNEWS.com.au the decision is understandable given that unlimited cover was previously a common feature of workers’ compensation policies.

He says the decision is unlikely to result in major financial consequences for insurers.

“The significance of this decision shouldn’t be exaggerated,” he told insuranceNEWS.com.au. “It’s not Armageddon for the insurance industry.”

QBE declined to comment.