Policy terms affecting increase of risk

It is settled law that if the assured alters the very nature of the risk being run by the insurers then they are discharged from liability as a matter of common law, but if the assured merely increases the risk of loss then the insurers remain liable. Policy terms may be used to vary the common law position, but to date they have been construed very narrowly. A different approach has nevertheless been adopted by Mr Justice Patten in Ansari v New India Assurance Ltd [2008] EWHC 243 (Ch).