The Marine Insurance Act, once described by the Attorney General’s Department as “out of step”, is under review.  The Australian Law Reform Commission has released a report outlining recommendations to remedy the Act’s deficiencies. 

The commission has recommended the policies “should be governed by the Insurance Contracts Act 1984, as it was intended that the Act should encompass all contracts of insurance”.   

The report found that implied and express warranties, such as legality of adventure, change of voyage and matters relating to seaworthiness are “unduly harsh on insureds and create uncertainty about terms”. 

The Commission also reportedly called for the amendment of the Marine Insurance Act to make “utmost good faith an implied term of an insurance contract”, bringing the amendments into line with the Insurance Contracts Act and giving the courts a wider range of remedies, including the award of damages. 

Law firm Clayton Utz said in a summary that the commission “faces stiff opposition from the insurance market” to any reform in this area.