A condition in a business liability insurance policy requiring the insured to 'comply with legislation and Australian Standards' is to be construed according to its natural and ordinary meaning as an unqualified obligation where: (a) other conditions in the same clause are expressly qualified by 'take reasonable care', indicating the parties turned their minds to qualification; (b) the unqualified construction does not deprive the policy of all or most meaningful cover; and (c) the clause heading does not suggest a general qualification of reasonableness. The BP Refinery criteria for implying terms ad hoc for business efficacy do not apply to questions of construction — that is, whether an express term should be read as impliedly qualified. The repugnancy principle (Fraser v B N Furman) only requires reading down a compliance condition where it is established that the condition's scope is largely coincident with the ambit of cover provided.
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