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 contended that liability arose only as tiles broke.
Held: To construe the insuring clause as if an occurrence could include mere damage caused by the commodity to itself, would fail to give effect to the natural meaning of the language which contemplates that physical damage will be caused by the commodity to something else. The damage claimed was not within the cover provided by the insuring clause.


Mr Justice Charles Lord Justice Jonathan Parker Lord Justice Potter


[2004] EWCA Civ 23




England and Wales


CitedRodan International Limited v Commercial Union CA 1999
The claimants sold bulk soap powder. The packager packed it in defective cardboard which caused it to cake. The buyer sought damages.for breach of contract against Rodan (i) for the difference between the sound value of the powder and its reduced . .
CitedA S Screenprint Ltd v British Reserve Insurance Co Ltd CA 1999
The Plaintiffs were insured under a policy that indemnified them, ‘against all sums which the Insured shall become legally liable to pay in respect of . . loss or damage . . during the period of insurance and caused by goods (including containers) . . .
CitedJames Budgett Sugars Ltd v Norwich Union Insurance Ltd ComC 15-May-2002
The insured sold contaminated sugar to a manufacturer of mincemeat so as to render it unmerchantable, the contamination was only discovered after the mincemeat had been sold on to end users.
Held: Physical damage may be caused by the mere fact . .
CitedYorkshire Water Services Ltd v Sun Alliance and London Insurance Plc and Others (1) CA 20-Aug-1996
The court was asked whether the costs of flood alleviation works were recoverable under public liability insurance policies.
Held: A claim for the costs of remedial action taken to mitigate future losses were not covered by the terms of the . .
CitedCharter Reinsurance Co Ltd v Fagan and Others HL 24-May-1996
The re-insurers appealed against a finding that they were liable to make payment under a contract which required them to pay ‘sums actually paid.’ They said that the company having become insolvent, no payment would in fact be made.
Held: The . .
CitedPromet Engineering (Singapore) Pte Ltd (Formerly Self-Elevating Platform Management Pte Limited) v Nicholas Colwyn Sturge and others (The Nukila) CA 26-Mar-1997
Insurers were liable for other damage to ship hull if there had been more than a latent defect in it. In Inchmaree clauses in English law, ‘damage’ usually refers to a changed physical state. . .
CitedGoulandris Bros v Goldmann and Sons 1958
An insurance clause ensuring ‘loss or damage in connexion with the goods’ under the Hague Rules for carriage of goods by sea includes economic loss even in the absence of such physical damage. . .
CitedRe Bradley and Essex and Suffolk Accident Indemnity Society CA 1912
A policy provided an indemnity against employer’s liability under the 1906 Act, but required employers to keep a wages book and to notify the insurers of details of all remuneration paid during the period of insurance within one month from the end . .
CitedPioneer Concrete (UK) Ltd v National Employers Mutual General Insurance Association Ltd 1985
The case concerned the construction of a policy containing terms requiring the insured to notify the insurers ‘immediately’ if he had knowledge of any accident, claim or proceedings.
Held: In any case where an insurer is entitled to rely on . .
CitedAlfred Mcalpine Plc v BAI (Run-Off) Limited CA 11-Feb-2000
Obligations in a Notice of Claims clause should not be treated as conditions precedent to liability but as innominate terms apt only to create a defence to a claim under the policy if the consequences of breach are so serious as to give the insurers . .
CitedGeorge Hunt Cranes Ltd v Scottish Boiler and General Insurance Co Ltd CA 2002
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 . .
Lists of cited by and citing cases may be incomplete.

Construction, Insurance

Updated: 01 September 2022; Ref: scu.192288