‘Noted’ versus ‘Named’ – Is there a difference?
Do tenderers ever meet council’s insurance requirements?!
For example, many Australian Standard form contracts require that public liability insurance be taken out in the joint names of the principal and contractor. In our experience, this requirement is often resisted by contractors who say that the relevant insurance cannot be effected in joint names and the only option is to note the interests of the principal.
Luckily, this may not be the end of the world. Being noted (versus named) on a policy can still allow councils to claim on that policy.
This is because section 48 of the Insurance Contracts Act 1984 (Cth) entitles a person noted on the policy to make a claim on the policy for a loss.
Practically, whether or not Council should accept being noted only (vs named) will depend on the circumstances of each transaction.
What does your council do when a tenderer resists your council’s required insurance? What steps do you take before you agree to your council being noted on a contractor’s insurance policy?
|Louisa Nuccitelli | Senior Associate
61 3 9258 3591
|Kathryn Sutherland | Lawyer
61 3 9258 3692