NSW Insurance Ministerial Corporation (Formerly GIO of New South Wales) v Mesiti

The New South Wales Insurance Ministerial Corporation, formerly GIO of New South Wales, appealed to the Court of Appeal of New South Wales against a decision of the District Court. The dispute concerned the appellant's liability to indemnify the respondent, Mr. Mesiti, under a motor vehicle insurance policy for damage sustained to his vehicle. The core of the disagreement lay in whether the damage was caused by an "accident" as defined by the policy.

The Court of Appeal was required to determine whether the damage to Mr. Mesiti's vehicle, which occurred when it rolled down a driveway and collided with a fence, constituted an "accident" within the meaning of the relevant insurance policy. Specifically, the court had to consider whether the damage was caused by an event that was unforeseen and unintended by the insured.

The Court of Appeal held that the damage was indeed caused by an accident. The court reasoned that the rolling of the vehicle down the driveway was an unforeseen and unintended event, notwithstanding that the initial cause might have been the failure to properly secure the vehicle. The legal principle applied was that an accident, for the purposes of insurance, encompasses an event that is unexpected and not brought about by the deliberate act of the insured. The court found that Mr. Mesiti had not deliberately caused the vehicle to roll down the driveway.

The appeal was dismissed, and the decision of the District Court in favour of Mr. Mesiti was affirmed.