In a land mark case the Supreme Court has challenged the way that insurance companies invalidate policies.
In that case a Dutch cargo ship was stricken in rough seas. The crew lied about their inability to raise the alarm. As a consequence of the lie the insurer sought to invalidate the policy. The insurance company won in both the High Court and the Court of Appeal. The matter was considered by the Supreme Court which overturned the earlier decision. The Supreme Court found that the policy could only have been invalidated if the lie had a material impact upon the right to recover under the policy. In this case the failure to raise the alarm (and the lie about the failure) did not impact upon the right to recover. The damage to the ship and its cargo would have occurred even if the alarm had been raised.
This has a wide ranging impact upon insurers and their clients. If you have had to abandon an insurance claim because your policy was invalidated you may be able to reassert your claim. If you need help please contact John Lambe.
John has many years of experience of dealing with insurance claims and offers a number of flexible ways to fund these cases such as no win no fee and shared recoveries agreements.