Firm PI 1 Ltd v Zurich Australian Insurance Ltd - [2015] 1 NZLR 432

Insurance — Government earthquake insurance — Liability of insurer — Relationship of private and EQC cover — Insurance contract limiting insurer’s liability to amount of loss in excess of EQC Act cover — Building underinsured — Whether insurer liable up to full sum insured or sum insured less government payment — Earthquake Commission Act 1993, ss 18 and 30.

Contract — Interpretation — Principles — Purposive and contextual interpretation — Structure of bargain and commercial purpose — Commercial absurdity — Observations.