PAN ATLANTIC INSURANCE COMPANY LTD AND OTHERS V PINE TOP INSURANCE COMPANY

(1994) 3 Re LR 101

House of Lords

Before Lord Templeman,1 Lord Goff of Chieveley, Lord Mustill, Lord Slynn of Hadley and Lord Lloyd of Berwick 1

Non-disclosure - “Material circumstance” - “Judgment of a prudent insurer” - Applicable test - Understatement of loss records - Renewal of casualty excess of loss treaty for 1982 - Earlier years’ records - Disclosure of losses of US$235,768 - True losses of US$468,168 - Whether additional losses material to contract - Whether establishment of material nondisclosure sufficient to enable insurer to avoid liability - Marine Insurance Act 1906 sections 17, 18.