Business interruption insurance: calculation of indemnity

In the March 2011 of Insurance Law Monthly there was discussion of the decision of Reyes J in New World Harbourview Hotel Co Ltd v Ace Insurance Ltd, April 2010, Hong Kong CFI. This was an important judgment on the operation of business interruption policies in the context not of material damage but rather of loss of business due to disease.

Reyes J’s decision was subsequently confirmed by the Hong Kong Court of Appeal in a very short judgment, and has now been confirmed by the Hong Kong Court of Final Appeal, [2012] HKCFA 21. The leading judgment was given by Sir Anthony Mason, a non-permanent judge of the CFA.