New Zealand’s Court of Appeal has dismissed a QBE case arguing that Allianz should share costs for a Christchurch earthquake claim because both companies were providing cover when the catastrophe struck the city.

The earthquake that hit at 4.35am on September 4 2010 caused significant damage to a property insured by QBE under a policy due to expire at 4pm.

A broker had previously organised new cover with Allianz that commenced the day of the earthquake, without specifying a start time.  The Allianz policy says it would expire at 4pm on September 4 2011.

QBE sought a 50% contribution from Allianz for the claim, arguing the policy began from midnight, so both companies were liable for costs at the time of the catastrophe.

The Court of Appeal said it was immaterial that the broker and Allianz had not discussed a specific start time, and it was accepted that the building’s body corporate never sought to obtain double insurance.

“Viewing the communications objectively, what was sought and what was agreed to be provided was a policy that incepted on the expiry of the QBE policy,” the judgment says.