In the December 2007 edition of Insurance Focus, we looked at
the case of Allstate Exploration NL v QBE Insurance (Australia)
Ltd [2008] VSC 380 which considered the interpretation of an
industrial special risks policy arising from the collapse at the
Beaconsfield Gold Mine in Tasmania. The case was recently heard on
appeal (Allstate Exploration NL v QBE Insurance (Australia)
Ltd [2008] VSCA 148) where the insurer's denial of
indemnity was upheld.
Background
Following the much publicised collapse at the Beaconsfield Gold
Mine in Tasmania on 25 April 2006, Allstate Exploration NL
(Allstate) (joint venturers of the mining operations) sought
indemnity under an industrial special risks (ISR) policy issued by
QBE Insurance (Australia) Ltd (QBE) for business interruption
losses resulting from the mine closure after the collapse. The mine
closure was the result of miners being trapped and the ensuing
rescue operation, as opposed to any physical damage to the mine.
QBE
