Marine insurance: declaration policies

Declaration policies operate by allowing the assured to declare particular risks to the insurers under a framework agreement whereby cover is in place at a specified earlier date and declarations inform the insurers of the risks that have been allocated to the contract. Most declaration policies are in obligatory form, so that as soon as the assured obtains subject matter within the terms of the policy, there is coverage. JDA Co Ltd v AIG Insurance New Zealand Ltd [2021] NZHC 2912 is an important decision of the New Zealand High Court, analysing the trigger for cover and the consequences of subsequent failure to declare the insured subject matter.

The insurance scheme