Insurance Law Monthly

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The Inner House of the Court of Session has, in Young v Royal and Sun Alliance Insurance plc [2020] CSIH 25, dismissed an appeal by the assured from the decision of the Outer House, [2019] Lloyd’s Rep IR 482 on the meaning of the duty of fair presentation in the Insurance Act 2015. The question was whether the insurers had, by asking questions that were strictly limited in their ambit, waived disclosure of facts that would have been material but outside the scope of the questions.

The judgment of HHJ Pelling QC in Griffiths v Liberty Syndicate 4472 [2020] EWHC 948 (TCC) has confirmed the principle that the running of the statutory limitation period for a claim under a property policy is triggered by the occurrence of the insured peril. The fact that the policy refers to indemnification for repair costs does not postpone the trigger to the point at which such costs are incurred.

Under the Third Parties (Rights Against Insurers) Act 2010 a third party with a claim against a person insured by a liability or similar policy is entitled to bring a direct action against the insurers without first having to establish the liability of the assured. The insurers can rely upon any defences that could have been pleaded by the assured, including limitation. By contrast, under the Third Parties (Rights Against Insurers) Act 1930 a claim against the insurers could be brought only after the liability of the assured had been established.

The New Zealand Court of Appeal has in Southern Response Earthquake Services Ltd v Dodds [2020] NZCA 395 upheld the decision of the trial judge. The question was whether a settlement could be overturned following a change in the law which accepted a significant part of the sum awarded. Although this case was decided under New Zealand legislative provisions, the principles are for the most part the same as in England and indeed English authorities were referred to by the court.