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Right to repudiate property insurance under scrutiny

The rights of property insurers to sidestep claims because policy-holders have not disclosed information about the property concerned is again under scrutiny in court.

Sun Alliance is currently facing proceedings aimed at forcing it to honour a policy taken out in respect of land and premises at Ravensthorpe Industrial Estate, Yorkshire.

Sun Alliance repudiated the policy for non-disclosure, saying that it was unaware that part of the premises was occupied by a bicycle trading company.

The trustees of the property owners say this did not entitle the insurer to avoid the policy.

 ANZ Grindlays Trust Corporation (Jersey) Ltd v Sun Alliance and London Insurance Ltd

PLS News, 10/12/98

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