AUSTRALIAN CONSOLIDATED PRESS HOLDINGS LTD v ROYAL INSURANCE (GLOBAL) PTY LTD and ORS [1997] NSWCA 33

AUSTRALIAN CONSOLIDATED PRESS HOLDINGS LTD v ROYAL INSURANCE (GLOBAL) PTY LTD and ORS

SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL

COLE and BEAZLEY JJA, and DUNFORD AJA 20 February 1997, 21 February 1997 [1997] NSWCA 33

CONSTRUCTION of insurance policy — value of loss to be determined prior to reduction for deductibles.

Cole JA Consolidated Press Holdings Limited and other corporations and individuals were insured between 30 June 1994 and 30 June 1995 under a Fire Extraneous Perils Combined Material Damage and Business Interruption Policy issued by the eight respondent Insurers. The Insureds had a quantity of gold bullion in the strong room of its premises at 54-58 Park Street, Sydney. Between 28 April and 1 May 1995 thieves broke into the strong room and stole the bullion, occasioning damage to doors, locks, carpet and the safe. The parties have agreed upon the cost of making good the damage. They also agreed that the policy covered theft of the bullion, although the value of the bullion is not yet agreed. It is agreed that the value of the bullion exceeds $A5 million.

It is convenient, for the purposes of illustrating the competing positions of the Insurer and the Insured to set forth the monetary contentions of the parties whilst recognising that the value of gold is not yet agreed.

Insurer Insured a) Gold Bullion limit of liability 5,000,000.00 a) Value of Gold 5,416,9: b) b) Value of Alluvial Gold 330,152 c) Repairs to safe 1,500.00 c) Repairs to Safe 1,500.01 d) Repairs to doors/locks 6,944.85 d) Repairs to doors/locks 6,944.8: e) Repairs to carpet 475.00 e) Repairs to carpet 475.00 5,008,919.85 5,755,9 f) Less unabsorbed remainder of deductible (985,976.00) f) Less unabsorbed remainder of aggregate (985,97 deductible g) Less deductible this loss (5.000.¢ Amount payable under Policy 4,022,944.85 Amount payable under Policy 4,764,9 Amount paid under Policy 4,022,944 less amount received 4,022,9- Further amount payable NIL Further amount payable 742,049 Bainton J upheld the construction of the policy which the insurer's calculation illustrates. It is from that construction that this appeal is brought.