Credit insurer Atradius does not have to pay out a A$27 million claim to Optus over invoices unpaid at the time of the collapse of Bill Express when the latter collapsed in mid-2008, the Supreme Court of New South Wales has ruled.Inadequate disclosure by Optus to Atradius about the history of slow payments by Bill Express, as well as inadequate drafting of clauses in the insurance contract relating to a sub-agency agreement, helped persuade the judge, Robert McDougall, that the insurer does not have to pay.At the time Bill Express folded, the firm owed Optus in excess of $62 million, according to the judgement handed down earlier this month. Bill Express was selling between $5 and $6 million worth of Optus Mobile and Virgin Mobile pre-paid airtime weekly, with the commission on these sales being the major source of revenue for the firm.Bill Express had a history of late payments under the (very short term) credit allowed it by Optus. There was a lack of disclosure by Optus to Atradius over three payment arrangements made, and breached, by Bill Express between 2005 and 2007. Optus, however, did not adequately disclose this conduct to its insurer. Optus made its claim under a credit insurance policy with an indemnity cap of $30 million and a liability for 90 per cent of the loss up to a maximum of $27 million.McDougall ruled that Atradius "is entitled to avoid the policy for fraudulent non-disclosure [by Optus]" of its payment plans.