GENERAL ACCIDENT FIRE AND LIFE ASSURANCE CORPORATION, LTD. v. J. H. MINET & CO., LTD.
(1942) 74 Ll.L.Rep. 1
COURT OF APPEAL.
Before Lord Justice MacKinnon, Lord Justice Goddard and Lord Justice du Parcq.
Insurance brokers - Breach of contract to insure - Negligence - Excess reinsurance issued by plaintiff company to Deutscher Luftpool in respect of "Flight and/or ground risks" to aircraft declared on risk - Cover from July 1, 1937," subject to 60 days' notice of cancellation at any time" - Instructions given in October, 1937, by plaintiffs' head office to their underwriter at Lloyd's that all outstanding liabilities on their non-marine and miscellaneous business must be terminated - Notice of cancellation given to Deutscher Luftpool to expire Dec. 31, 1937 - Plaintiffs still liable on declarations made before expiry date - Intention to reinsure such liabilities - Employment of defendants (Lloyd's brokers) to effect such reinsurance - Cover obtained by defendants with underwriters (R.W.R.) holding line on original reinsurance: -
Assured: General Accident Fire & Life Assurance Corporation.
Period: Dec. 10, 1937, to Dec. 31, 1937.
Risk: Excess reinsurance.
Sum insured, interest and conditions: In respect of original policy issued to Deutscher Luftpool. Maximum Rm.500,000 any one loss, excess of Rm.250,000 any loss, as original. Hereunder 2% of Rm.500,000, i.e., maximum Rm. 10,000 any one loss. Full reinsurance clause, excluding retention. 25% of total premiums received by General Accident Fire & Life Assurance Corporation.
Claims by Deutscher Luftpool under plaintiffs' reinsurance policy in respect of accidents to aircraft happening after Dec. 31 but declared before Dec. 10 - Claim by plaintiffs for indemnity from reinsuring underwriters (R.W.R.) - Repudiation of liability by reinsuring underwriters (R.W.R.) upheld in arbitration - Claim by plaintiffs against defendants for damages for breach of contract to insure - Alleged failure to exercise reasonable care and skill in effecting reinsurance - Dispute as to particulars of risk passed on by plaintiffs' underwriter to defendants - Knowledge and duty of broker - Whether plaintiffs under any obligation to examine cover note to see whether instructions to insure had been properly carried out by broker - Construction of slip initialed by R.W.R. - Extent of cover - Misrepresentation and/or concealment - Right of R.W.R. to repudiate liability.