What constitutes "wear and tear" under an ISR Policy?

Judgment date: 25 July 2011

JSM Management Pty Ltd v QBE Insurance (Australia) Ltd [2011] VSC 339

Supreme Court of Victoria¹

In Brief

• The operation of a container forklift on a concrete hardstand, which was not of sufficient capacity to bear the weight of the forklift, caused substantial cracking and damage to the hardstand.
• The court considered significant questions as to the proper interpretation of 2 provisions of an ISR policy.
• The first was whether an exclusion clause with respect to liability for wear and tear to the insured premises would apply.
• The second was whether a condition which required an insured to take reasonable precautions in respect of damage to the insured premises would apply in circumstances where the insured knew the container forklift was being used.