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Insurance – Compulsory insurance of motor vehicles. The Mercantile Court ruled that the claimant insurer of the first defendant's car, which had caught fire at his place of employment while being repaired, causing damage to the employer's premises and the adjoining premises, was entitled to a declaration that the first defendant's car insurance policy, did not cover a claim (the claim) by the employer's insurer against the first defendant for an indemnity in respect of the sums it had paid out as a result of damage caused by the fire. It was not a 'normal function' of a car to undergo repair. The repair that had been undertaken to the car did not amount to 'using' the car, within the meaning of the car insurance policy. Accordingly, the policy did not respond to the claim.
Insurance – Compulsory insurance of motor vehicles. The Mercantile Court ruled that the claimant insurer of the first defendant's car, which had caught fire at his place of employment while being repaired, causing damage to the employer's premises and the adjoining premises, was entitled to a declaration that the first defendant's car insurance policy, did not cover a claim (the claim) by the employer's insurer against the first defendant for an indemnity in respect of the sums it had paid out as a result of damage caused by the fire. It was not a 'normal function' of a car to undergo repair. The repair that had been undertaken to the car did not amount to 'using' the car, within the meaning of the car insurance policy. Accordingly, the policy did not respond to the claim.
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