DANBOL PTY LTD V SWISS RE INTERNATIONAL SE

[2020] VSC 23, Supreme Court of Victoria, Justice Riordan, 7 February 2020

Insurance (property) – Held covered – Insurers offering temporary cover following termination of policy – Whether offer binding on insurers – Bilateral contract – Unilateral contract

D was insured by SR for the period 16.00 on 24 August 2017 to 16.00 on 24 August 2018. On 18 July 2018 SR sent an email requesting information about the activities of a tenant, and on 9 August SR sent an email stating that there was no automatic held covered provision if there was no renewal. At 10.19 on 24 August SR refused to renew but offered a 14-day extension at a net premium of $3,506.06 to assist D to place cover elsewhere. D replied at 10.58, apologising that incorrect information had been given and asking SR to “review and advise”. On 29 August 2018 at 12.33 SR provided a renewal quotation effective 24 August 2018, and if it was not accepted then the 14-day extension until 7 September 2018 at the stated extra premium would be applicable. A fire occurred on 30 August 2018.