GIO of New South Wales v Zerafa

In *GIO of New South Wales v Zerafa*, the New South Wales Court of Appeal considered an appeal by GIO of New South Wales from a decision of the District Court. The dispute concerned the extent of GIO's liability under a motor vehicle insurance policy for injuries sustained by Mr. Zerafa, the driver of a vehicle insured by GIO, in a single-vehicle accident.

The primary legal issue before the Court of Appeal was whether the policy of insurance, which contained a clause excluding cover for injuries sustained by the driver of an insured vehicle if that driver was under the influence of alcohol, operated to exclude Mr. Zerafa's claim. This required the court to interpret the scope and application of the exclusion clause in the context of the facts of the accident.

The Court of Appeal found that the exclusion clause was not applicable. It reasoned that the clause was intended to apply only where the driver's intoxication was a contributing factor to the accident. In this instance, the evidence did not establish that Mr. Zerafa's intoxication had caused or contributed to the single-vehicle accident. Therefore, GIO remained liable under the policy for Mr. Zerafa's injuries. The appeal was dismissed.