Dishonesty, overvaluation and impecuniosity

The Court of Appeal in North Star Shipping Ltd v Sphere Drake Insurance plc [2006] EWCA Civ 378 has upheld the first instance judgment of Colman J ( [2005] 2 Lloyd’s Rep 76; see Insurance Law Monthly (Volume 17: December (pp6–9))), confirming that marine war risks insurers had the right to avoid a policy for non-disclosure of outstanding criminal charges against the assured. In so doing the Court of Appeal expressly set out its concerns about the scope and consequences of the duty of utmost good faith.