Insurance Law Monthly
Property Insurance - Explosion and proximate cause
(Martini Investments v McGuin [2000] 2 Lloyd’s Rep 313)
The unusual facts of
Martini Investments v McGuin
[2000] 2 Lloyd’s Rep 313
arose from the catastrophic volcanic activity on the island of Montserrat the effect of which was to render much of the island
a no-go area. Martini raised complex questions of the extent to which the eruption of a volcano can be the proximate cause
of subsequent damage to surrounding properties. An important issue also arose in relation to the interest awardable given
the inability of the assureds to effect repairs due to the contamination of surrounding areas.