AN IMPORTANT INSURANCE CASE.

Waikato Argus, Volume V, Issue 314, 14 July 1898, Page 2

AN IMPORTANT INSURANCE CASE.

(by telegraph.—press association-). Wellington, Last Night. An interesting case came before Mr Justice Edwards in banco to-day. The facts as stated were that on the morning of Bth December laot the inmates of the house of Mr J. H. Lewis, of "Wanganui, were aroused by a severe shock of earthquake. So frightened were they that they left the house and took shelter in outbuildings. No further shock occurred, however. About half an-hourafter leaving the house a fire started in one of the rooms, and the place was burnt down. A claim was made on the Alliance Insurance Company for £550, the amount of two policies. The mutter was submitted to un arbitrator (Mr D. Peate), who now sought the opinion of the Court as to whether the company was exempt from liability by the terms of one of the conditions of its policies, which provided that they should not be liable for fires caused by, through or during the existence of an earthquake. Mr Young, for the claimants, argued that the onus lay on the company of showing fchut the earthquake was the cause of the fire. The facts, as found, showed that it was neither by, nor during the existence of tho shock, and it could not be said lo be through the shock, because the earthquake was not the approximate cause of the fire, which probably arose through the carelessness of the inmates or some other cause. Mr Bell, on behalf of the company, contended that but for the earthquake the fire would never have happened, and the construction of the clause was that if the earthquake might have been the cause then the onus was upon the claimants of showing that the fire was attributable to some other cause. There appeared to be no authorities on the subject of earthquake fires, but illustrations were cited from accidents arising from other causes, such as explosions and hostilities, etc. His Honor reserved judgment. Mr Bell pointed out that tlie matter was one of the greatest importance to Insurance Companies, as an earthquake might absolutely ruin them. He added that the defending company would pay the insurance to Mr Lewis in any event, and merely wanted a judgment in the case on the point of law for future guidance.