Policy conditions - Classification of policy conditions

(McAlpine plc v BAI (Run-Off) Ltd, forthcoming in [2000] Lloyd’s Rep IR 352)

The decision of the Court of Appeal in Alfred McAlpine plc v BAI (Run-Off) Ltd, forthcoming in the April issue of [2000] Lloyd’s Rep IR 352 , is likely to prove to be a landmark ruling on the manner in which conditions in insurance contracts are classified and also on the effect of any breach of condition. As will be seen, the decision potentially confers greater rights on insurers to treat the lateness of a claim as a defence to the claim than was previously thought to be the case. The Court of Appeal upheld the decision of Mr Justice Colman, [1998] 2 Lloyd’s Rep 694 , but on somewhat different reasoning which amounts to the adoption of fresh legal principles on the point.