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United Kingdom Leading Case guarantees and indemnities

Pan Atlantic Insurance Co Ltd v Pine Top Insurance Co Ltd

[1995] 1 AC 501
JurisdictionUnited Kingdom
CourtUK House of Lords
Year1995
StatusBinding authority

Summary

Material non-disclosure in insurance contracts requires proof that the non-disclosure induced the actual underwriter to enter the contract, not merely that a prudent underwriter would have been influenced.

Key Principle

duty of disclosure; material non-disclosure must have induced the actual underwriter (not just prudent underwriter)

Area of Law

insurance

Related Cases

Allianz Australia Insurance Ltd v Sim [2012] HCA 39
Certain Lloyd's Underwriters v Cross (2012) 248 CLR 378

Under Insurance Contracts Act s.54, an insurer cannot refuse a claim on the basis of the insured's breach of duty of disclosure where that breach did not cause or contribute to the loss.

Westport Insurance Corporation v Gordian Runoff Ltd (2011) 244 CLR 239

Insurance contract construction follows general commercial contract principles, requiring consideration of text in context and giving effect to the commercial purpose.

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