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ARTICLE · 29 JANUARY 2008

CAR Insurance: Scope Of Standard Form Exclusion

CMS Cameron McKenna Nabarro Olswang
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The Court of Appeal has considered the scope of a standard defects exclusion clause (known as "DE3") in a CAR (contractors all risk) insurance policy.

United KingdomInsurance
Billie Bingham
Billie Bingham
Stephen Tester
Stephen Tester

The Court of Appeal has considered the scope of a standard defects exclusion clause (known as "DE3") in a CAR (contractors all risk) insurance policy. The wording of the exclusion distinguishes between property that is defective (for which there is no cover) and property that is free from defective condition.

The court held that loss to property that is in a defective condition is excluded. It is irrelevant whether the insured is responsible for the loss.

For more detail on the Court of Appeal's decision click here.

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

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