Capral Ltd v CGU Insurance [2024] FCA 775
Jackman J (at [63-71]) provides a convenient guide on how insurance contracts are to be read.
(1) Meaning is determined objectively. (2) The perspective of the reasonable businessperson is to be adopted. (3) It is assumed parties intend to ‘produce a commercial result’9. (4) Clauses are to be read harmoniously. (5) Exclusion clauses are read by reference to ordinary meaning and against party interest when ambiguous10. (6) Attention must be given to the purpose of insurance contracts – ie, the sharing of risk arising from a contingency. (7) Courts try to follow settled positions in other jurisdictions where the same or similar language is used11.
This principle is from Episode 113 of interpretation NOW!
Footnotes:
9 Mount Bruce [2015] HCA 37 [46-47] generally.
10 Darlington (1986) 161 CLR 500 (510), Selected Seeds [2010] HCA 37 [29].
11 McCann [2000] HCA 65 [74], Eather (1986) 6 NSWLR 390 (394) cited.