Good faith and fraud

Micro Design Group Ltd and another v Norwich Union Insurance Ltd [2005] EWHC 3093 (TCC) turns primarily on its facts, but a number of points of law did arise. In March 2003 NU issued policies to Micro Design Group (Ince House Ltd) and Micro Design Group (Ince) House Ltd, under which NU agreed to indemnify the named assureds for loss or damage resulting from theft of computer equipment. On 8 November 2003 a burglary took place. A claim was made by two companies, Micro Design Group (the parent company) and Micro Design Consultancy Ltd, for losses alleged to be in excess of £400,000. NU denied liability on three grounds: the claimants were not parties to the policies; if that was wrong NU was entitled to avoid the policies for non-disclosure; and NU was entitled to deny liability for fraud in the claim. The Court ruled in favour of NU on all three issues.