Terms of insurance policies

Consequences of breach

In Friends Provident Life & Pensions Ltd v Sirius International Insurance [2005] EWCA Civ 601 the Court of Appeal considered the effect of breach of an innominate term and, in particular, whether a sufficiently serious breach which had serious consequences might entitle an insurer to repudiate liability for the claim, as contemplated by the Court of Appeal in Alfred McAlpine plc v BAI (Run-Off) Ltd [2000] 1 Lloyd's Rep 437.The Court of Appeal has, by denying this possibility, signalled a significant alteration in the law. The decision is discussed by David Turner of 4 New Square.