GRE INSURANCE LTD v ALLINGHAMS REMOVALS PTY LTD (T/AS ALLINGHAMS REMOVALS AND MAC HODGES REMOVALS) [1996] NSWCA 229

GRE INSURANCE LTD v ALLINGHAMS REMOVALS PTY LTD (T/AS ALLINGHAMS REMOVALS AND MAC HODGES REMOVALS)

SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL

PRIESTLEY and COLE JJA and Simos AJA 24 October 1996, 24 October 1996

[1996] NSWCA 229

RECTIFICATION of insurance policy award of interest pursuant to s57 Insurance Contracts Act 1984 — trial judge's award not disturbed.

Cole JA Hulme J rectified a contract of insurance of a motor vehicle. In my opinion he was correct to do so.

The facts are in short compass. In July 1984 Allinghams Removals Pty Ltd ("the Company'') acquired a domestic furniture removal business known as Mac Hodges Removals. The business name "Mae Hodges Removals", however, was registered in the name of two directors of the company, D F and J R Allingham; at least

one, if not two, were directors of the company. In December 1984 the Company arranged for the acquisition of a removal lorry. The vehicle was purchased by Mercantile Credits Ltd and leased to the Company in whose name it was registered.

The Company used an insurance broker, Damons Insurance Brokers ("the Broker") to effect its insurances. The Broker, in respect of the period 17 January 1986 to 17 January 1987, arranged insurance for the vehicle with GRE Insurance Ltd, the appellant insurer. However the insured was shown in both the proposal and policy as Mac Hodges Removals Pty Ltd, with Mercantile Credits interest as lessor noted. There never was a company Mac Hodges Removals Pty Ltd.

That policy of insurance was renewed on 17 January 1987 for a further twelve months. The vehicle was severely damaged in an accident on 8 May 1987. On 18 May 1987 a GRE staff engineer signed an authorisation for repairs at a cost of $40,750. That document showed as the insured "Mae Hodges Removals".

On 5 June 1987 the Company advised the insurer that "the trucks operated by Mac Hodges Removals, are in fact part of a fleet owned by Allinghams Removals of Armidale and Sydney". This led the insurer to respond on 24 June 1987 denying liability on various grounds including that: "Proposal for insurance indicates that the vehicle was to be insured under the name of Mac Hodges Removals Pty Ltd. This company has since learned that the vehicle is owned by Allingham Removalists Pty Ltd."