Insurance Law Monthly

The Court of Appeal in Motor Insurers’ Bureau v Lewis [2019] EWCA Civ 909 has affirmed the first instance decision of Soole J in Lewis v Tindale [2019] Lloyd’s Rep IR 324, confirming that the Road Traffic Act 1988 does not comply with EU law in the form of the Consolidated Motor Insurance Directive 2009, European Parliament and Council Directive 2009/103/EC in failing to require insurance for vehicles used and causing injury on private land. The Court of Appeal further held that the requirement was one that was capable of having direct effect and could be enforced against the Motor Insurers’ Bureau.

Section 145 of the Road Traffic Act 1988 requires insurance for damage caused by or arising out of the use of a motor vehicle on a road or in a public place. The phrase “arising out of the use of” has given rise to some difficult borderline cases. The decision of Tipples J in Carroll v Taylor and Others [2020] EWHC 153 (QB) is perhaps rather more straightforward on the facts, but the judgment is very helpful on its analysis of previous authority.

The judgment of Julia Dias QC in McKeever v Northernreef Insurance Co SA 2019 WL 02261376 considers a range of issues relating to the grounding and subsequent looting of a yacht. The judgment is a model of clarity and provides very useful analysis of the nature of the most important insured perils under a marine policy.

The New South Wales Court of Appeal in Bank of Queensland Ltd v AIG Australia Ltd [2019] NSWCA 190 has reversed the first instance decision of Stevenson J in the New South Wales Supreme Court, [2019] Lloyd’s Rep IR 143. The Court of Appeal has given the widest meaning to the word “series” as contained in an aggregation clause.

In AIG Australia Ltd v Kaboko Mining Ltd [2019] FCAFC 96, an appeal from the decision of McKerracher J in the Federal Court of Australia [2019] Lloyd’s Rep IR 515, the preliminary issue was the scope of an insolvency exclusion in a D&O liability cover whereby claims against the directors related to the company’s insolvency were not covered.