Cost of reinstatement

Article Abstract:

The New South Wales Court of Appeals ruled in CIC Insurance Ltd. v. Bankstown Football Club Ltd. that an insurer reinstating damaged property was required to indemnify the insured regarding the property. The obligation is for the actual cost of reinstatement and is not dependent on damage occurring during the insured time period. The Hgh Court of New Zealand has ruled that absolute liability can be imposed on car renters by explicit language in the rental agreement and that an insurance broker did not have a duty to report termination of insurance to the bank holding the mortgage on the insured property.

Duty of care (Law), Automobiles, Rental, Rental cars, Insurance law, Indemnity

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CIC Insurance Ltd v. Bankstown Football Club Ltd

Article Abstract:

The New South Wales Court of Appeal determined that the 1984 Insurance Contracts Act's Section 58 did not apply to a termination of insurance that was accepted but held the insurance company liable for later damage anyway under the contract to reinstate the premises. The case, CIC Insurance Ltd v. Bankstown Football Club, involved arson that was linked to the club's officials causing the insurer to cancel the insurance. Section 58 requires a 14 day notice of an expiring contract and so did not apply but the insurance covered reinstatement and so damage from a subsequent fire was covered.

Direct Property and Casualty Insurance Carriers, Fire, marine, and casualty insurance, Fire & Theft Insurance, Contracts, Business insurance, Fire insurance, Clubs, Clubs (Associations)

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Insurance Contracts Act 1984 (Cth), Section 48

Article Abstract:

Two conflicting interpretations of section 48 of the 1984 Insurance Contracts Act have been given in two different cases decided by the Supreme Court of New South Wales. Both cases involved when insurance companies have a duty to indemnify third parties not specifically named in an insurance policy. One decision was Commonwealth Bank of Australia v Baltica General Insurance Co, and the other decision was Carden v GE Heath Casualty & General Insurance Ltd.

Interpretation and construction, Third parties (Law)

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