ALLIANZ INSURANCE AUSTRALIA LTD V CERTAIN UNDERWRITERS AT LLOYD'S OF LONDON SUBSCRIBING TO POLICY NUMBER B105809GCOM0430

[2019] NSWSC 453, New South Wales Supreme Court, Justice Rees, 3 May 2019

Insurance (liability) - Double insurance - Contribution - One policy containing an exclusion clause and one policy containing an excess clause - Effect of conflicting clauses on contribution

Mr Dempsey, who was working on the construction of a road, was hit by a passing car and seriously injured. He received some AUS$1 million in damages from Baulderstone, the builders of the road. Baulderstone was the beneficiary of a construction all risks policy issued by Allianz. This provided that if there was any other insurance in place, the Allianz policy was to become an excess cover only. The Lloyd's policy, by contrast, contained a full exclusion of liability "which forms the subject of insurance by any other policy and this Policy shall not be drawn into contribution with such other insurance". Baulderstone made a claim against Allianz, which paid the loss in full. Allianz then sought contribution from Lloyd's.