Insurance Law Monthly

In Oceanus Capital Sarl v Lloyd's Insurance Co SA (The Vyssos) [2026] EWCA Civ 863 the Court of Appeal has upheld the decision of Sue Prevezer KC, sitting as a Deputy High Court Judge, [2025] EWHC 3293 (Comm). The decision contains important analysis of the standard MII clauses used in the London market, and confirms that the correct analysis of the wording is that the interest insured by a mortgagee is its security interest in the insured vessel rather than the sums payable under the owners' own insurance.

In IAG New Zealand Ltd v Aubrey [2025] NZHC 3672 Gendall J in the New Zealand High Court considered the standard - although variously worded - construction policy exclusion for defective workmanship. Gendall J has confirmed that the exclusion is limited to the cost of redoing the defective work and does not extend to consequential damage caused by the defective workmanship.

In Owners Corporation 1 Plan No PS 650567Y v Shangri-La Construction Pty Ltd [2026] VSC 117 Delany J in the Victoria Supreme Court ruled that a claims made and notified policy did not protect the assured's managing director who was also a co-assured under the policy. That was because no claim had been made against the managing director within the policy period, and the liability incurred by the managing director did not fall within the insuring clause.

In Body Corporate 82981 v AIG Insurance New Zealand Ltd [2025] NZHC 3413 the argument for the assured was that defence costs were payable in respect of a claim made for a liability that was excluded under the policy. The court refused to construe the policy as one which covered defence costs independently of coverage.