Insurance

Insurance

1. Widely accepted principles of insurance

   • Prudential Assurance v IR
     • Contained 5 aspects
       • Contract
         • Care is needed when wording the policy
           • Pilkington v. CGU Insurance
           • Cinema - Horbury Bulding Systems v. Hampden Insurance
       • Consideration
         • Absence of a premium was not fatal - usually considered the consideration for insurance
           • Hampton v. Co-op Provident
       • Benefit of something happening
       • Uncertainty
         • Risk is an event that can be predicted
         • Uncertainty is an event that cant be predicted
       • Against something
         • Must have an insurable interest

2. Classes of insurance

   • Two main distinctive categories
     • Property or works
     • Liability insurance
   • Single or floater policy
     • Although, it is not possible to get a single policy for the construction industry. The risks are considered too vast.
   • Material damage policy - CAR insurance
     • Some policies will contain a QC clause
   • Three types of liability
     • Employers liability
       • Employers Liability (Compulsory Insurance) Act 1969
     • Public liability
       • Covers any person other than employees
     • Professional indemnity
       • Protects against legal liability

3. Particulars of Construction

   • Joint names policy
     • No rights of subrogation
       • Simpson v Thomson
       • Exceptions include fraud or dishonesty
   • Composite policy
     • General Accident Fire v Midland Bank
   • Fire on construction sites

4. Future developments

5. Fundamental principles of construction

   • Must have an insurable interest
   • CAR policy insures the contractor and SC
     • Petrofina v. Magnaload
       • Rights of subrogation not permitted to those joint assured
   • Uberrimae Fidei - upmost good faith
     • Non-disclosure is avoidance of the entire contract
       • This includes incomplete facts
         • Aarons Reefs v. Twiss
     • Whilst non disclosure amounts to misrepresentation, the insurer must show he has been induced
       • Pan Atlantic v. Pinetop
     • Disagreements between MC and SC - do not have to disclose
       • Laker Vent v. Templeton Insurance
     • The insured must inform the insurer of changes during the policy
       • The Liston Pride
   • Subrogation
     • Rights against third parties
       • Colinridge v. Royal Exchange Assurance
       • Right to recieve benefit from third parties, on behalf of the assured
         • Castellain v Preston
   • Breach of warranty - termination
     • The Good Luck