The Court of Appeal has now addressed the interpretation of an
insurance policy in response to multiple event claims, confirming
that an insured is entitled to be indemnified for each loss
resulting from insured events: Ridgecrest New Zealand Limited v
IAG New Zealand [2013] NZCA 291, on appeal from Dobson J's
decision in the High Court in November 2012.
Ridgecrest was insured for replacement cover under a State
"Businesspack" policy. As a result of the Canterbury
earthquake sequence, Ridgecrest lodged four claims for earthquake
damage, following earthquakes on 4 September 2010, 26 December
2010, 22 February 2011 and 13 June 2011. Each of those claims had
been accepted by IAG.
The Court focussed on each claim individually, rather than
treating them as a composite, and held that each claim should be
dealt with under the replacement cover clause, clause C2. That
clause stated that IAG would pay either the cost of restoration (ie
repair) to the same condition when
