Insurance Law Case Note: Gray v Barr

Abstract

The impact of Gray v Barr ultimately demonstrates that ‘public policy is rightly regarded as an unruly steed which should be cautiously ridden’. The court’s limited definition of accidental damage has resulted in great unfairness to third parties in comparison to first party claimants. The undue emphasis on deterrence has proven to be an insufficient reason to deny third parties the benefit of compensation, particularly where motor vehicle policies allow such claims. It is certainly incongruous to require insurers to pay for damage caused by criminal behaviour but Gray and subsequent cases have failed to adequately justify why there should be a blanket prohibition on such claims.

Keywords: insurance law; public policy; third party insurance; first party insurance