Collyear v CGU Insurance Limited

The dispute in *Collyear v CGU Insurance Limited* concerned a claim for contribution between two insurers, CGU Insurance Limited and the appellant, arising from a single insurance policy. The appellant sought to recover from CGU a proportion of the amount it had paid out under that policy. The core of the disagreement lay in whether both insurers had insured the same risk, and if so, whether CGU had made a payment in respect of the realisation of that insured risk.

The primary legal issue before the court was whether a situation of double insurance existed, thereby entitling the appellant to claim contribution from CGU. This required the court to determine if the policy issued by the appellant and the policy issued by CGU covered the same risk, and if the appellant's payment was made in circumstances that would trigger a right of contribution from CGU.

The court reasoned that for contribution to arise, there must be two or more policies covering the same risk. It found that the policies in question did not cover the same risk, and therefore, there was no double insurance. Consequently, the appellant was not entitled to claim contribution from CGU. The appeal was dismissed with costs.