Utmost good faith

Effect of avoidance on contribution claims

The decision of Moore-Bick J in Drake Insurance plc v Provident Insurance plc 30 January 2003, unreported, arose out of a routine motor accident which became increasingly complicated once it was appreciated that there were two liability insurers on risk. The case raises interesting issues relating to contribution, but perhaps, more importantly, it considers the problem of the right of insurers to avoid a policy for breach of the duty of utmost good faith where the matters not disclosed ultimately prove not to be material. The issues are complex and it is understood that the decision is likely to be appealed.