Trident General Insurance Co Ltd v McNiece Bros Pty Ltd [1998] HCA 44 | 8 September 1988

ON 8 SEPTEMBER 1988, the High Court of Australia delivered Trident General Insurance Co Ltd v McNiece Bros Pty Ltd [1988] HCA 44; (1988) 165 CLR 107 (8 September 1988).

The proprietor of a building site (Blue Circle Cement) took out an insurance policy with Trident General Insurance which promised to indemnify the assured who it defined as Blue Circle Cement but also “all its subsidiary, associated and related Companies, all Contractors and Sub-Contractors and/or Suppliers”.

A contractor (McNeice) who incurred a legal liability (a judgment in favour of an injured worker) was held to be covered although not a party to the policy.

A non-party beneficiary under an insurance policy has a right at common law for benefits promised under the policy. The decision creates an exception to the privity of contract rule.

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