Brokers

Marine brokers and payment of premium

In the June 2004 issue of Insurance Law Monthly there was a discussion of the decision of Deputy High Court Judge Jonathan Hirst QC in Heath Lambert Ltd v Sociedad de Corretaje de Seguros [2003] EWHC 2269 (Comm). One aspect of that decision has now been appealed to the Court of Appeal ([2004] EWCA Civ 792) but the appeal has been dismissed. The decision raised interesting questions as to the scope of s53(1) of the Marine Insurance Act 1906. That section provides: ‘Unless otherwise agreed, where a marine policy is effected on behalf of the assured by a broker, the broker is directly responsible to the insurer for the premium, and the insurer is directly responsible to the assured for the amount which may be payable in respect of the losses, or in respect of returnable premium.’