Recent Decision of Note on the Operation of Section 58 of the Insurance Contracts Act

A statutory policy comes into effect by reason of an insurer’s failure to give a renewal notice under section 58(2) of the ICA at least 14 days prior to expiry.

This case confirms that the statutory policy will only continue for the period of the expiring policy (unless terminated sooner). A further statutory contract will not be triggered by the insurer’s failure to give a section 58(2) notice before expiry of the statutory policy.

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