Packer v Cigna Insurance Asia Pacific Ltd

The dispute in *Packer v Cigna Insurance Asia Pacific Ltd* concerned the interpretation of a contract of insurance, specifically a policy of professional indemnity insurance. The applicant, Mr Packer, sought to recover under the policy for losses he alleged were covered by its terms. The matter came before the High Court of Australia, with judgment delivered by Gummow and Hayne JJ.

The central legal issue before the High Court was whether the professional indemnity insurance policy covered the applicant's claim. This required the Court to determine the proper construction of the policy wording, particularly in relation to the scope of the indemnity provided and any exclusions that might apply to the applicant's circumstances.

The Court's reasoning focused on the principles of contractual interpretation, emphasising that the meaning of the policy was to be ascertained by reference to the ordinary meaning of the words used, read in their context and against the background of the factual matrix. Their Honours considered the specific clauses of the policy, including the definition of "claim" and the nature of the "act, error or omission" that was alleged to have given rise to the loss. The Court ultimately found that the applicant's claim did not fall within the coverage provided by the policy.