QUANTUM PROCESSING SERVICES CO V AXA INSURANCE UK PLC

Court of Appeal, Lord Justice Waller, Lord Justice Thomas and Lord Justice Aikens, 2 December 2008

Insurance (travel) – Exclusion of loss arising from hazardous activity – Assured informing insurers that he was going scuba diving – Whether exclusion covered scuba diving

F obtained a travel insurance policy from the defendant insurers in respect of a holiday in Mexico. F intended to go scuba diving, and informed the insurers accordingly. He was assured that scuba diving was covered. The policy issued to F excluded any hazardous activity and also any claims arising from wilful exposure to needless danger. F suffered decompression sickness after going cave diving, and received treatment by QPS at a cost in excess of £25,000. The question was whether the policy covered loss as a result of cave diving. The trial judge found for the insurers on the ground that cave diving was more dangerous than open water diving, and that F had not said that he wished to be covered for that activity. The Court of Appeal overturned this ruling. It was held that F had disclosed his intention to go scuba diving, and once he had made that disclosure and the risk had been accepted, the exclusion for hazardous activities had to be read as not referring to scuba diving of any types. The assured was thus covered.