Provisions in a policy which are stated to be conditions precedent should not be treated as a mere formality which is to be evaded at the cost of a forced and unnatural construction of the words used in the policy. They should be construed fairly to give effect to the object for which they were inserted, but at the same time so as to protect the assured from being trapped by obscure or ambiguous phraseology.
Potter LJ: ‘The insurer should be properly placed in possession of a notification, with accompanying information, in sufficient time for him to make a reasoned decision,
(a) in relation to the existence of cover under the terms of the policy;
(b) as to the prima facie amount of the loss;
(c) and most important, as to the investigations necessary or advisable to be made while the incident is fresh and evidence still available, whether in the form of an investigation at the accident scene or the availability and memory of potential witnesses. While reports of damage to the police in cases of damage by malicious persons or theft may well assist to that end, in many cases it will do little to assist the insurer in respect of the matters which concern him under [the clause in question]’.
Judges:
Potter LJ
Citations:
[2002] 1 All ER (Comm) 366, [2001] EWCA Civ 1964, [2002] Lloyd’s Law Reports 178
Links:
Jurisdiction:
England and Wales
Cited by:
Cited – Pilkington United Kingdom Limited v CGU Insurance Plc QBD 28-Jan-2004
The claimants had installed glass tiles in a roof. They fractured, and facing a claim for damages, they sought payment from their insurers. The claimants argued that the risk of fracture meant that the damage occurred upon installation, the insurers . .
Cited – Shinedean Ltd v Alldown Demolition (London) Ltd and Another CA 20-Jun-2006
The second defendant insurers appealed a finding of liability, saying that the insured had failed to provide its documents within a reasonable time in order to meet a condition to that effect in its terms. The documents had not been provided for . .
Lists of cited by and citing cases may be incomplete.
Insurance
Updated: 11 June 2022; Ref: scu.198323
