Western Australian Current Acts Western Australian Current Acts (1) If under a policy
of insurance the insurer may refuse, but for this section, to indemnify an
employer against the employer’s liability to pay compensation or damages
in respect of a compensable injury for which the employer is liable on the
ground of an act or omission by or on behalf of the employer but the act or
omission did not cause or contribute to the injury for which compensation is
or damages are claimed, the insurer may not refuse to indemnify the employer
but the insurer’s liability to indemnify the employer is reduced by the
amount that fairly represents the extent to which the insurer’s
interests were prejudiced as a result of the act or omission.
(2) The onus of
proving that the insurer’s interests were prejudiced by the act or
omission by or on behalf of the employer and the extent of that prejudice is
on the insurer.
[Section 174A inserted: No. 72 of 1992 s. 21;
amended: No. 42 of 2004 s. 147; No. 31 of 2011 s. 117.]