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NSW farmers win flood case against insurer
28 Aug 2002
Max and Judith Hams, who own Koralta Station, 100 kilometres north-east of Broken Hill, have won their case against CGU Insurance in the NSW Supreme Court. The couple sued CGU after it refused to pay for flood damage to their property, incurred over a 24-hour period in February 2000. Their home and farm buildings were inundated with four years' worth of water and the property was then under water for nine months. The insurer refused to pay, stating that the water was floodwater from a creek 25 kilometres away, and this was not covered in their policy.
However, Justice Clifford Einstein disagreed and found that most of the damage had been caused by inundation from local run-off. Floodwaters from the creek did not arrive until six hours later.
The Hams were awarded $622,398, which will rise to about $750,000 with interest. They had previously offered to settle the case twice with CGU, but the insurer rejected their offers.
Tradingroom.com.au, 28/8/02.
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