ZURICH INSURANCE PLC V NIRAMAX GROUP LTD

[2021] EWCA Civ 590, Court of Appeal, Lord Justice Popplewell, Lady Justice Elizabeth Laing and Lord Justice David Richards, 23 April 2021

Insurance (property) – Duty of fair presentation – Inducement – Right to avoid

Niramax carried on the business of waste collection and waste recycling from various sites in north-east England. The premises were insured by Millennium in 2014, but subject to survey. Early in 2014 a risk survey report was prepared for Millennium, and risk requirements were laid down. The risk survey report for the Hartlepool site set out seven risk requirements relating to storage, CCTV cameras, electrical installation, security and a fire petition. The most important, Requirement 6, stated “3 x fixed Shredders within Black Sand Building: It is necessary to protect shredders by means of an automatic Fire Suppression System. Timescale: within 30 days of survey (by 16 March 14)”. The Fire Suppression System was not installed despite chasing by Millennium, and special conditions came into force on 22 October 2014, increasing the deductible to £250,000 per claim and requiring Niramax to self-insure for 35 per cent of the balance of any loss.