Marine Insurance - Utmost Good Faith

(Decorum Investments Ltd v Atkin, The Elena G [2001] Lloyd’s Rep IR (forthcoming))

The principles upon which utmost good faith is based are now very clearly established (see Pan Atlantic Insurance Co Ltd v Pine Top Insurance Co Ltd [1994] 2 Lloyd’s Rep 427 ). The assured is required to make a fair presentation of the risk to the underwriters, and they are then to make an assessment of the risk based on the information available to them from their own sources and from that provided by the assured. The decision of David Steel J in Decorum Investments Ltd v Atkin, The Elena G [2001] Lloyd’s Rep IR (forthcoming) is a good if somewhat unusual illustration of the operation of the doctrine in relation to fears and rumours affecting the security of an insured vessel.