GRE Insurance Ltd v Allinghams Removals Pty Ltd (T/As Allinghams Removals and MAC Hodges Removals)

GRE Insurance Ltd appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales. The dispute concerned the interpretation of an insurance policy and whether it covered certain losses incurred by Allinghams Removals Pty Ltd (trading as Allinghams Removals and MAC Hodges Removals).

The primary legal issue before the Court of Appeal was whether the insurance policy, specifically a clause relating to "damage to property," extended to cover consequential losses arising from damage to the insured's own vehicles. The court was required to determine the scope of the indemnity provided by the policy in circumstances where the insured's vehicles were damaged, leading to a loss of business income.

The Court of Appeal held that the policy's wording did not provide cover for consequential losses. Applying principles of contractual interpretation, the court found that the phrase "damage to property" referred to physical damage to the insured's property and did not encompass the indirect financial losses resulting from that damage. The court reasoned that for consequential losses to be covered, the policy would need to contain express and unambiguous wording to that effect.

The appeal was dismissed.