Off the Rails: collision with a train

Phyllis Jeffries was killed instantly when a CountryLink Xplorer train collided with her motor vehicle at a level crossing. As a result of the collision, both carriages of the train were derailed and rail infrastructure was damaged. The owners of the train and rail infrastructure sought to recover repair costs from Jeffries' third party property insurer, Vero Insurance. Section 51 of the Insurance Contracts Act provides a third party the right to recover against an insurer where its insured has died.

The policy of insurance provided that Vero would indemnify its insured against liability for loss or damage to property 'as the result of an accident'. Cover for damage which was 'intentionally caused' was excluded from the policy. Vero argued that its insured driver had committed suicide and therefore the damage was not the result of an accident as required by the policy.