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ARTICLE · 22 APRIL 2010

Notification of Circumstances - An Objective Test?

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The recent case of Loyaltrend v Brit UW Limited & Others, relating to damages under a property policy for business interruption arising out of a subsidence claim, further considered and applied the principles set down by the Court in the recent spate of decisions on notification in liability policies, specifically the cases of Kidsons, Laker Vent and Aspen.

United KingdomInsurance
Alison Zobel
Alison Zobel
Tahneet Irshad
Tahneet Irshad

Published in HFW's Insurance/Reinsurance Bulletin April, 2010.

(1) Loyaltrend Limited (2) Sye Razvi v (1) Creechurch Dedicated Limited (2) Brit UW Limited (3) Catlin (Five) Limited [2010] EWHC 425 (Comm)

The recent case of Loyaltrend v Brit UW Limited & Others, relating to damages under a property policy for business interruption arising out of a subsidence claim, further considered and applied the principles set down by the Court in the recent spate of decisions on notification in liability policies, specifically the cases of Kidsons1, Laker Vent2 and Aspen3. It was held that the test for whether a claim "may be made" was an objective one and further that the failure to "immediately" notify the potential claim to insurers was sufficient to invalidate the claim.

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