Australian Rail Track Corporation Ltd v QBE Insurance (Europe) Ltd

The appeal concerned the construction of an insurance policy and its application to a claim for indemnity. The appellant, Australian Rail Track Corporation Ltd, sought to recover under a policy issued by the respondent, QBE Insurance (Europe) Ltd. The dispute centred on whether an excess provision in the policy applied to each occurrence causing injury or damage, or to each claim made by the insured for indemnity. The primary judge had found that the excess applied to each occurrence.

The Court of Appeal was required to determine whether the primary judge had erred in their construction of the insurance policy, specifically concerning the application of the excess provision. The central legal issue was whether the excess was intended to limit the insurer's liability per event or per claim.

The Court of Appeal upheld the primary judge's construction of the policy. Their Honours reasoned that the wording of the policy, particularly in relation to the definition of "occurrence" and the application of the excess, supported the interpretation that the excess applied to each distinct event that gave rise to a claim for indemnity. This interpretation was consistent with the ordinary meaning of the terms used and the overall scheme of the policy.

The appeal was dismissed, and the appellant was ordered to pay the costs of the first to fourth respondents.