Insurer's Right to Decline a Policy for
Non-Compliance with a Condition Precedent Conflicts with New
Insurance Provisions in the UK
In the recent case of Kelly Builders (Rosemount) Limited v
HCC Underwriting Agency Limited 1 the Irish High
Court ruled that the defendant insurance company was entitled to
avail of a breach of condition precedent to decline cover under a
policy of insurance between the parties (the
“Policy”). It is interesting to note
that if this case were to be determined by the English courts after
the Insurance Act 2015 (the “UK Act”)
comes into force on 12 August 2016, it is likely that a different
decision would be reached.
Decision
In this case, a fire on a building site caused substantial
damage. A condition precedent of the Policy was that a
“fully charged” fire extinguisher had to be to
hand at all times. However, it was accepted by the insurer
that even if a “fully charged” fire
extinguisher had been available, it would not have
