K/S Merc-Scandia XXXXII v Underwriters to Lloyd’S Policy 25T 1054 87 and Others: QBD 20 Jul 2000

The Insurers had avoided a policy after a claim had been brought, and the insured had produced a fraudulent document. Having won their case, the applicants sought to enforce the award against the insurers. The insurers were held not to be excused under the policy. The duty of good faith applied on matters up to the claim, but need not apply to all questions which arose after a claim had been validly made. The forged document did not demand that the insurers assume any new risk, and the insurers remained answerable.


Gazette 20-Jul-2000, Times 08-Aug-2000


Third Parties (Rights Against Insurers) Act 1930


England and Wales

Cited by:

CitedVersloot Dredging Bv and Another v Hdi Gerling Industrie Versicherung Ag and Others SC 20-Jul-2016
The ‘DC MERWESTONE’ suffered a water ingress of water flooding the engine room. This resulted from (i) the negligence of the crew in failing to close the sea inlet valve of the emergency fire pump and drain down the system, after they had used the . .
Appeal fromK/S Merc-Scandia XXXXII v Underwriters to Lloyd’s Policy 25T 1054 and Others CA 31-Jul-2001
The owners of the ‘MERCANDIAN CONTINENT’ had obtained judgment in earlier High Court proceedings against a Trinidadian shipyard for damage caused by negligent repair work. Jurisdiction in the earlier proceedings had been founded on an agreed . .
Lists of cited by and citing cases may be incomplete.

Commercial, Insurance

Updated: 20 May 2022; Ref: scu.82659