Insurers had rejected a claim under the policy, saying that the proposal form had included a basis of insurance declaration warranted by the proposer, and that since it had named a main contractor different to the one named, there was no liability under the contract.
Held: The mistake had been innocent, but the ‘basis’ clause making the representation part of the contract was effective. The difference between the company named and that used was material in terms of risk. There was a breach of the warranty, and the insurers were entitled to avoid the policy.
Judges:
Akenhead J
Citations:
[2012] EWHC 3105 (TCC), [2013] BLR 28, [2012] 2 CLC 837
Links:
Citing:
Cited – Condogianis v The Guardian Assurance Company Limited PC 2-May-1921
Australia – The insured had filled out a proposal form for fire insurance incorrectly having failed to mention in his answer to a question about a second of two fires for which he had previously claimed. The proposal form contained a declaration . .
Cited – Dawsons Ltd v Bonnin HL 1922
The House considered whether a provision was a warranty rather than a representation, allowing the contract to be avoided for its breach. It was an inadvertently inaccurate statement by the insured in the proposal form which was expressly . .
Cited – Rozanes v Bowen CA 1928
The court considered a proposal form for a jeweler’s block policy as filled in by the insured or his agent which incorrectly identified only one previous loss although there were several previous losses. The form stated that ‘It is understood that . .
Cited – Holmes v Scottish Legal Life Assurance Society KBD 1932
There had been an honest misstatement made by a son about his father’s health in a proposal form for a life insurance. The proposal form was made ‘the basis of the contract’ and there was a further provision in the policy that it could be avoided if . .
Cited – Bank of Nova Scotia v Hellenic Mutual War Risks Association (Bermuda) Ltd (The Good Luck) HL 1992
The effect of breach of an insurance warranty is automatic, rather than dependant on any acceptance or election.
Lord Goff of Chieveley said: ‘So it is laid down in section 33(3) that, subject to any express provision in the policy, the insurer . .
Cited – Unipac (Scotland) Ltd v Aegon Insurance Co (UK) Ltd SCS 1996
(Inner House) Information set out in a proposal form was incorrect and the declaration made by the insured was incorporated as the basis of the insurance. The insurer repudiated liability. . .
Cited – Unipac (Scotland) Ltd v Aegon Insurance Co (UK) Ltd SCS 1996
(Inner House) Information set out in a proposal form was incorrect and the declaration made by the insured was incorporated as the basis of the insurance. The insurer repudiated liability. . .
Cited – Economides v Commercial Union Assurance Co Plc CA 22-May-1997
The insured represented to the insurers that to ‘the best of his knowledge and belief’ the full cost of replacing all the contents in his flat as new was pounds 16,000. He contended that that meant that he honestly believed that pounds 16,000 was . .
Cited – Jagjivan Kumar v AGF Insurance Ltd ComC 10-Nov-1997
The court was concerned with a claim under a solicitors’ professional liability top up insurance policy. By clause 5 the insurer undertook ‘not to avoid repudiate or rescind this insurance upon any ground whatsoever including in particular . .
Cited – Zeller v British Caymanian Insurance Company Ltd PC 16-Jan-2008
(Cayman Islands) The Board considered the effect of a misdeclaration on a proposal for medical insurance.
Lord Bingham considered a statement which was said to be ‘complete and correct to the best of my knowledge and belief’. Lord Bingham . .
Cited by:
Appeal from – Genesis Housing Association Ltd v Liberty Syndicate Management Ltd CA 4-Oct-2013
The housing association was to develop an estate of social housing, supported by an insurance guarantee. The insurance proposal contained a clause stating that the information in the proposal was to form the basis of the policy, and that the policy . .
Lists of cited by and citing cases may be incomplete.
Insurance
Updated: 06 November 2022; Ref: scu.465741