PARKER V NATIONAL FARMERS UNION MUTUAL INSURANCE SOCIETY LTD

[2012] EWHC 2156 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Teare, 31 July 2012

Insurance (fire) - Composite policy - Deliberate destruction by one co-assured - Non-disclosure of previous fraudulent claims - Effect of fraud and non-disclosure by one co-assured - Subrogation - Condition precedent relating to claims - Effect of breach - Whether breach excused by Unfair Terms in Consumer Contracts Regulations 1999 - Effect of ICOBS 8

C1 was the owner of a house, which was insured in her name by NFU, the insurers, under a policy dated 6 July 2009. On 22 July 2009 C2, who was by then living with C1, was added as an assured. The house was damaged by fire on 6 December 2009, and a claim was made by C1. The insurers denied liability on a number of grounds: there was non-disclosure of a fraudulent claim by C2 in 2002 in respect of a stolen watch; there was non-disclosure of a fraudulent claim by both C1 and C2 in 2007 in respect of two stolen watches; C2 had deliberately set the fire in 2009; false documents relating to the lease of the property had been submitted in support of the claim; and there was breach of a policy condition which required documents. NFU counterclaimed for repayment of the sums paid for the earlier claims, for the cost of investigating the fraud and for a declaration that any sums payable to C1 could be recovered by way of subrogation from C2.