Materiality and inducement: alleged criminality

To date the courts have been willing to treat as material for disclosure purposes the existence of outstanding allegations of criminality against the assured. In Norwich Union Insurance Ltd v Meisels [2006] EWHC 2811 (QB) Tugendhat J concluded that the rule is less rigid than at first sight it appears to be, and that allegations of criminality may be immaterial if no dishonesty is involved and if the allegations are old and relate to minor matters. The Court also ruled that evidence that the assured was innocent of the allegations against him is relevant both to the materiality of the allegations and the right of the insurers to regard themselves as having been induced by the assured’s silence to enter into the contract.