Key Points
- An insurer is entitled to deny indemnity if an insured does not
take all reasonable precautions to avoid risk.
Background
Mitchell Canny (the Plaintif), an apprentice electrician
employed by Primepower, suffered severe burns as he was decanting
petrol from one container to another whilst one of his colleagues
sprayed a flammable liquid and attempted to start an unused engine
at Primepower's place of business (the premises). At the time
of the incident, Primepower employees were attending a social
function, the Managing Director's birthday party, at the
premises after finishing work at 11.00am. Alcohol was supplied by
the Managing Director.
Over the course of the afternoon, the plaintiff and other
apprentices were engaged in attempting to seize an engine to get it
to run faster and fail. Some supervisors of Primepower gave advice
to the apprentices on how to make the engine start and seize. The
Managing Director was aware the activity was taking
