Property insurance: warranties

Sections 10 and 11 of the Insurance Act 2015 have swept away the old law on warranties, suspensory conditions and conditions precedent. Under the new regime, by section 10 a warranty operates only to suspend the risk during the period of breach. If the risk is so suspended, or if the term is not a warranty at all, then the clause still has to pass the test under section 11 and the assured may recover if he can show that the breach was immaterial to the loss.

Bluebon Ltd v Ageas (UK) Ltd [2017] EWHC 3301 (Comm), a lengthy decision of Bryan J, demonstrates the complexities of the old law.