Caple v Sewell and Others 2001

FACTS:

The third defendant, S, was the owner of a rigid inflatable boat known as a Sea-Doo. That boat was on display on dry land at a press preview for a boat show. At the request of the claimant, a press photographer, the boat was taken out to sea.  Whilst at sea, an accident occurred involving the boat, injuring the claimant who claimed for damages.

At trial S was found one-third liable for the injury, and as a result S brought its insurers into the litigation as third parties. The insurance policy stated that the Sea-Doo was insured “whilst being used for demonstration purposes.” The insurers argued that at the time of the accident, the Sea-Doo was being used as a platform for commercial photography rather than for demonstration purposes.

The judge found that the Sea-Doo was being used for demonstration purposes at the time of the accident and that any other use, such as carrying the photographer was incidental.

The insurers appealed on the ground that the essential character of the journey the Sea-Doo was on was to provide a platform for the claimant’s photography, and therefore was not within the terms of the policy.

HELD:

The appeal was dismissed.

In looking at the purpose of the journey, it was necessary to look primarily to the insured’s purposes, rather than to anyone else’s purposes, for making the journey. The defendants had seen the request by the claimant to take the Sea-Doo out to sea as an opportunity to further demonstrate the vessel. Accordingly, the judge had been correct in finding that the Sea-Doo was at the time of the accident being used for a purpose covered by the insurance policy.

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