BODY CORPORATE 74246 V QBE INSURANCE (INTERNATIONAL) LTD AND ANOTHER

[2017] NZHC 1473, High Court of New Zealand, Justice Whata, 29 June 2017

Insurance (property) - Double insurance - Contribution - Date on which policy incepted - Implied term - Rectification

In September 2009 the assured entered into a property policy with QBE on premises in Christchurch. The policy stated that it applied for the period "4 September 2009 at 4pm to 4 September 2010 at 4pm". The policy contained an "excess" clause under which, if there was any other insurance in place, that other insurance responded first and QBE would be liable only for loss in excess of the cover of the other policy. QBE declined renewal, and Allianz agreed to provide cover for the following year. The Allianz policy stated "Effective date: 04/09/2010" and "Expiry date: 4pm on 04/09/2011". There was an excess clause requiring the assured to give notice of any insurances in place, in which case the Allianz policy would operate as excess cover only. At 04.35 on 4 September 2010 the property was severely damaged by an earthquake. QBE paid the claim, but it sought 50 per cent contribution from Allianz on the basis that Allianz had been on risk at the same time.