Double insurance and contribution: date of inception of cover

Most policies incept at midnight and terminate at midnight the following year. Some policies specify a particular hour of the day for inception and termination. Body Corporate 74246 v QBE Insurance (International) Ltd [2017] NZHC 1473 raised the question whether a replacement policy incepted at midnight on the first day of cover, or whether it incepted at the hour on which the first policy was stated to terminate.

Whata J in essence held that there is a presumption of seamless rather than overlapping cover, so that the replacement policy incepts immediately on the termination of the first.