Non-disclosure of criminal charges – first Insurance Act 2015 avoidance

The High Court has considered again the issue of non-disclosure of criminal charges against an innocent insured and found that an insurer could avoid a policy under the Insurance Act 2015 (the 2015 Act): Berkshire Assets (West London) Ltd v AXA Insurance UK Plc [2021] EWHC 2689 (Comm). This is understood to be one of the first avoidance judgments for breach of the duty of fair presentation under the 2015 Act. The insurer in this case was assisted by an internal practice note which showed it did not have authority to write the risk had it been told about the non-disclosure at the time of placement.

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Court of Appeal rules on test for inducement pre-Insurance Act 2015

The Court of Appeal has dismissed the insurer’s appeal in Zurich Insurance Plc v Niramax Group Ltd [2021] EWCA Civ 590. Upholding the first instance decision of Cockerill J (discussed in our earlier blog post here), the Court of Appeal held that the insured’s non-disclosure of material facts had not induced the insurer to renew an insurance policy on less onerous terms than would have been imposed if disclosure had been made.

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