Vero, AMI and AA Insurance refused to pay $4.9M of rental hire costs claimed by not at fault drivers where their insured drivers were at fault. Right to Drive funded the rental cars in return for rights against the insured driver(s) and their insurers. It sued to recover from the insurers. The insurers denied liability for many reasons. The insurers lost in the High Court. In Frucor Beverages Ltd & ors v Blumberg & ors [2019] NZCA 547 the Court of Appeal dismissed the insurers’ appeal(s) and commented about the lack of merit of the appeals. Previous Australian and United Kingdom cases were similar. The Court of Appeal makes very critical comments about the insurers in paras [151] to [162] of the judgment.
Auckland
PO Box 137243,
Parnell, 1052
Tel: +64 27 434 5489
grant@grantshand.co.nz
