Doheny & Ors v New India Assurance Company Ltd. & Ors [2004] EWCA Civ 1705 (15 December 2004)

Doheny & Ors v New India Assurance Company Ltd. & Ors [2004] EWCA Civ 1705 (15 December 2004)

The Court held that the 5th declaration in the insurance proposal form required disclosure of insolvency of both individuals and companies in which the insured had an interest. The term 'bankrupt' was intended to apply to both, and the claimants' failure to disclose company insolvencies constituted a breach entitling insurers to avoid liability. The appeal was dismissed.

Citation
[2004] EWCA Civ 1705
Parties
Claimants/appellants: Doheny & ors; Defendants/respondents: New India Assurance Company Ltd & ors
Jurisdiction
England and Wales
Judgment Date
15 December 2004
Procedural Posture
Appeal / Court of Appeal (civil Division) Judgment on Appeal From High Court
Outcome
Appeal dismissed
Legal Topics
Construction of Insurance Proposal Forms, Material Non Disclosure, Waiver of Disclosure, Interpretation of 'bankruptcy' in Insurance Context
Insurance Law Contract Law Construction of Insurance Proposal Forms Material Non Disclosure Waiver of Disclosure Interpretation of 'bankruptcy' in Insurance Context

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Parties

Doheny & ors

Claimants/appellants

New India Assurance Company Ltd & ors

Defendants/respondents

Procedural Posture

Appeal / Court of Appeal (civil Division) Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether the term 'bankrupt' in the insurance proposal form applies to companies as well as individuals
  2. 2 Whether the claimants were obliged to disclose insolvency of companies in which they had an interest
  3. 3 Whether insurers waived disclosure of company insolvency by the form of their questions

Ratio Decidendi

The Court held that the 5th declaration in the insurance proposal form required disclosure of insolvency of both individuals and companies in which the insured had an interest. The term 'bankrupt' was intended to apply to both, and the claimants' failure to disclose company insolvencies constituted a breach entitling insurers to avoid liability. The appeal was dismissed.

Court Disposition

Appeal dismissed

Orders

  • Judgment for the defendants/respondents
  • Insurers entitled to decline liability under the policy