Make your own free website on

5.4 LAW UPDATE - JUNE 1997

Exemplary damages for failing to pay out on a `properly established claim'

The latest case to hit the news opens the door to claims for exemplary damages against insurers who are in breach of their obligation of good faith.
Cedenco Foods Limited v State Insurance Limited, is an important reminder to the insurance industry of the obligations involved in the fulfilment of insurance contracts.