ABASAND OILS, LIMITED v. BOILER INSPECTION & INSURANCE COMPANY OF CANADA.
(1949) 83 Ll.L.Rep. 57
JUDICIAL COMMITTEEOF THE PRIVY COUNCIL.
Before Lord Porter, Lord Greene, Lord Morton of Henryton, Lord MacDermott and Lord Radcliffe.
Fire insurance-Explosion followed by fire -Prevention of business caused "solely" by an explosion-Concurrent causes of loss-Exceptions clause- Plaintiffs' oil refinery plant insured with defendant insurance company- Policy covering loss from an accident "as herein defined to an object described herein," defendants agreeing to pay for
loss on the property of the assured directly damaged by such accident . . .
"Accident" defined as including "a sudden and accidental explosion of gas within the furnace of the object"- Indorsement on policy headed "Use and Occupancy (Business)" and providing (inter alia):
A. In consideration of the premium, the company hereby agrees to pay the assured one thousand dollars ($1000), herein called the daily indemnity, for each day of total prevention of business on the premises described as Oil Refinery, and located at Waterways, near McMurray, Alberta, caused solely by an accident (occurring while this indorsement is in effect) to an object, covered by any of the schedules of this policy . . . and to pay the assured a part of the daily indemnity for partial prevention of business on the premises, so caused; all subject to a
limit of loss of one hundred thousand dollars ($100,000) for any one accident . . .
Limitation of Liability.
G. The company shall not be liable for payment for any prevention of business resulting from an accident caused by fire or by the use of water or other means to extinguish fire (nor for any prevention of business resulting from fire outside of the object, following an accident). . . .
Explosion in furnace of boiler-Resultant fire causing building to be burnt down-Whether fire due to explosion- Consequences of explosion-Whether prevention of business caused "solely" by explosion-Construction of policy- Appeal by plaintiffs from decision of Supreme Court of Canada, reversing judgment of Appellate Division of Supreme Court of Alberta (affirming Shepherd, J.), which awarded plaintiffs 100,000 dols.