ARTICLE · 09 JULY 2009

Tunnel Trouble In The Lion City

Hunt & Hunt

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The defendant, ACE Insurance Limited (“ACE”), issued a contract works liability insurance policy to a joint venture (“the JV”) engaged by PowerGrid Singapore Limited (“PowerGrid”), in August 2001.

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Limit (No 3) Limited –v– ACE Insurance Limited [2009] NSWSC 514

Background

The defendant, ACE Insurance Limited ("ACE"), issued a contract works liability insurance policy to a joint venture ("the JV") engaged by PowerGrid Singapore Limited ("PowerGrid"), in August 2001. The JV was to design and construct 2 cable tunnels from the Senoko Power Station to Gambas Avenue along Woodlands Avenue 8, in Singapore.

The works resulted in damage to the property of third parties, and some existing PowerGrid tunnels.

PowerGrid and the JV received claims from third parties, and PowerGrid and the third parties sought indemnity from the JV.

The JV sought indemnity from ACE in the first instance, which was denied. The JV then sought indemnity from the plaintiff, a subsidiary of Lloyds ("Lloyds"), under a general and product liability policy.

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