Pan Atlantic Insurance Co Ltd v Pine Top Insurance Co - House of Lords (Lord Templeman, Lord Goff, Lord Mustill, Lord Slynn and Lord Lloyd) - 25 July 1994

Marine insurance - House of Lords lays down tests for avoidance of policy on round of non-disclosure or misrepresentation

Pan Atlantic claimed payment from Pine Top under a contract of reinsurance. The defence was non-disclosure and misrepresentation. Pan Atlantic had not disclosed an insurance claim of $25,000 in relation to 1980, and had incorrectly stated that the total amount of claims in 1981 was $235,768 whereas it was in fact $468,168. Pan Atlantic had conceded, ever since the service of the amended Defence, that there had been inadvertent non-disclosure in respect of those items. It had not been suggested that the non-disclosure was deliberate.