Property insurance: accidental overload

The lengthy and detailed judgment of Flanagan J in Matton Developments Pty Ltd v CGU Insurance Ltd (No 2) [2015] QSC 72, previously discussed in Insurance Law Monthly (2016) 28 ILM 4 2), considered the meaning of the commonly used phrase “accidental, sudden and unforeseen” damage and the words “accidental overload”.

However, if the wording of the two contracts is deliberately different, the presumption is almost by definition ousted. MetLife Insurance Ltd v RGA Reinsurance Company of Australia Ltd [2016] NSWSC 980, a decision of McDougall J, illustrates the point.