Insurance Law Monthly

The rule of public policy, otherwise ex turpi causa non oritur actio, which precludes a claimant from succeeding in an action for damages where the claimant has been guilty of a serious criminal offence which has to be pleaded to establish a cause of action is most commonly discussed in the context of motor insurance.

Kraal v The Earthquake Commission [2015] NZCA 13, a decision of the New Zealand Court of Appeal, confirms that the phrase “physical loss or damage to property” means that the property itself has undergone a physical change and not that it has become unusable.