Insurance Law Monthly

In Nand v Tower Insurance Ltd [2016] NZHC 1455, which proceeded on assumed facts, property insurers sought summary judgment on a claim for fire damage caused by the assured’s son. The basic question was whether the policy covered damage caused by a third party, and that depended upon the meaning of the word “You” in the policy.

In Versloot Dredging BV and Another v HDI Gerling Industrie Versicherung AG and Others (The DC Merwestone) [2016] UKSC 45, the Supreme Court had to determine whether underwriters were entitled to reject a genuine claim under an insurance policy because the insured shipowners had told a lie (which was ultimately immaterial to the underwriters’ liability) in the course of the investigation of the claim. The case is discussed by David Turner QC of 4 New Square.

In December 2002 the EU adopted European Parliament and Council Directive 2002/92/EC on insurance mediation, replacing an earlier recommendation to member states. The Directive laid down minimum standards for insurance intermediaries, thereby allowing the development of a single market for cross-border trade. The Directive was implemented in the UK by changes to the Financial Services and Markets Act 2000 and the underlying secondary legislation, in particular the Handbook issued by the Financial Conduct Authority.