ARTICLE · 28 OCTOBER 2008

At The Courthouse

DLA Piper Australia

Explore more from DLA Piper Australia

In this matter, the Supreme Court of New South Wales rejected a claim for double insurance brought by Lloyds against CGU Insurance.

AustraliaInsurance

James Bruun

Colyear v CGU Insurance Limited [2008] NSWCA 92

In this matter, the Supreme Court of New South Wales rejected a claim for double insurance brought by Lloyds against CGU Insurance.

Emibarb Pty Ltd (the tenant) managed a restaurant under a lease from the Stuart Park Reserve Trust (the landlord) which was managed by the Wollongong City Council. Under the terms of the lease (clause 8.2.4), the tenant had an obligation to reinstate the premises if they were damaged or destroyed. The tenant held an Industrial Special Risks (ISR) policy with Lloyds, which covered both it and the landlord for their respective rights and interests. The landlord also held a policy with CGU to cover its own interests with respect to damage to the premises. Importantly, the CGU policy did not insure the tenant's interests.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

A New Insurer Risk – Contractual Liability For Breach Of The General Insurance Code Of Practice

AustraliaInsurance

A $2 Million “sting”: First Civil Penalty For Breach Of The Duty Of Utmost Good Faith

AustraliaInsurance

Gilchrist Connell

One Claim. $2 Million Penalty. A Warning To Every Insurer.

AustraliaInsurance

When Is A Loss Not A Loss? Federal Court Examines Insurance Policy Exclusions

AustraliaInsurance

# 8 Trauma Insurance In Australia: Key Issues To Consider

AustraliaInsurance

Carroll & O'Dea

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

Comparative Guide

Insurance & Reinsurance

See more popular content from

Insurance

AFCA’S New Approach To General Insurance Claims Handling: GICOP Compliance May Not Be Enough

The Australian Financial Complaints Authority has published new guidance clarifying how insurers must handle claims, including strict timeframes and expanded compensation rules. Insurers now face potential liability beyond policy limits for unreasonable delays, and may be required to compensate claimants for non-financial losses. With storm season approaching and complaint volumes rising, these changes create significant operational and financial pressure on the insurance industry.

AustraliaInsurance

Gilchrist Connell

The Data Centre Boom: Growth, Opportunity And Emerging Risk For The Insurance Industry

Data centres have become critical infrastructure assets in Australia's digital economy, attracting significant investment while facing mounting regulatory scrutiny over energy demands and infrastructure costs. As these facilities expand to meet AI-driven computing needs, they present complex insurance challenges spanning climate exposure, business interruption risk, and cyber vulnerabilities that require careful risk management strategies.

AustraliaInsurance

Podcast: Coffee With CGW – Get To Know Jess Byrne

Special counsel Jess Byrne reflects on her decade-long career progression at Cooper Grace Ward, from law clerk to her current role in the insurance team. She discusses her work in workers' compensation and CTP matters, highlighting the diverse client base and advocacy opportunities that define her practice.

AustraliaInsurance

Cooper Grace Ward

Navigating CTE Claims: A Guide For Insurers - August 2026 Update

Since the guide was first published in March 2026, significant developments have emerged across the medical, sporting, regulatory and litigation landscape.

AustraliaInsurance

ASIC Puts Motor Vehicle Premium Transparency Under The Spotlight

ASIC's Report 838 reveals significant transparency gaps in motor vehicle insurance premium communications, finding that renewal documents often fail to explain price changes adequately and that over 30% of consumers who contacted their insurer successfully negotiated lower premiums. The report establishes clear expectations for better practice in pricing disclosures and signals continued regulatory scrutiny of insurance pricing practices.

AustraliaInsurance

Gilchrist Connell

A $2 Million “sting”: First Civil Penalty For Breach Of The Duty Of Utmost Good Faith

The Federal Court has imposed a $2 million civil penalty on Hollard Insurance Partners for breaching the duty of utmost good faith in its handling of a home insurance claim. This landmark decision marks the first time an insurer has faced civil penalties under section 13(2A) of the Insurance Contracts Act 1984, following sustained delays, inadequate expert engagement, and failures to properly assess storm damage that left policyholders in temporary accommodation for over three years.

AustraliaInsurance

Gilchrist Connell

What to do if your TPD or income protection claim has been rejected

It pays to understand the basis upon which your income protection or TPD claim was declined.

AustraliaInsurance

Hall Payne Lawyers

When Is A Loss Not A Loss? Federal Court Examines Insurance Policy Exclusions

The Federal Court of Australia has determined that ANZ was not entitled to insurance coverage for nearly $117 million in class action settlements and defense costs, examining whether these settlements qualified as insured Loss under excess insurance policies. This landmark decision provides critical guidance on policy interpretation, particularly regarding when repayments of premiums, commissions and charges may fall outside insurance coverage, and how exclusions for excessive or improper charges should be

AustraliaInsurance

One Claim. $2 Million Penalty. A Warning To Every Insurer.

Australia's securities regulator has secured a landmark $2 million civil penalty against Hollard Insurance for breaching its duty of utmost good faith during a 17-month storm damage claim. The Federal Court found that repeated delays, inadequate expert assessment, and poor communication constituted a single contravention—even without deliberate misconduct. This precedent-setting decision signals that claims-handling failures on individual policies can now trigger seven-figure penalties, fundamentally

AustraliaInsurance

From Sustainability To Supply Chains: Rethinking Data Centre Risk In APAC

Asia-Pacific data centre expansion is creating unprecedented insurance challenges as rapid infrastructure growth strains regional water and power resources. Could intensive resource consumption by data centres generate environmental liability claims from affected communities and regulators? And are traditional property insurance models adequately capturing the contingent business interruption risks created by concentrated digital infrastructure dependencies?

AustraliaInsurance