Axa Corporate Solutions SA v National Westminster Bank Plc

Axa Corporate Solutions SA v National Westminster Bank Plc

The court found that the public and products liability sections of RBS’s primary contract of insurance with Axa for the period 31 March 2002 to 30 March 2003 did contain an express term excluding liability for terrorism, in the terms 'Terrorism exclusion (wording to be agreed)', as set out in Axa’s 20 March 2002 fax. There was no agreement to remove this exclusion, and the term was sufficiently certain to be effective.

Parties
Claimant: AXA Corporate Solutions SA; Defendant/part 20 Claimant: National Westminster Bank PLC; Part 20 Defendant: Marsh Limited
Jurisdiction
England and Wales
Judgment Date
29 July 2010
Procedural Posture
Commercial Insurance Dispute / Judgment After Trial
Outcome
Declaration granted in favour of Axa
Legal Topics
Interpretation of Insurance Contracts, Broker Authority, Terrorism Exclusion Clauses, Agency Law
Insurance Law Contract Law Interpretation of Insurance Contracts Broker Authority Terrorism Exclusion Clauses Agency Law

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Parties

AXA Corporate Solutions SA

Claimant

National Westminster Bank PLC

Defendant/part 20 Claimant

Marsh Limited

Part 20 Defendant

Procedural Posture

Commercial Insurance Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether there was an express term excluding liability for terrorism under the public liability and products liability sections of RBS’s primary contract of insurance with Axa for the period 31 March 2002 to 30 March 2003
  2. 2 If so, what were the terms of that exclusion

Ratio Decidendi

The court found that the public and products liability sections of RBS’s primary contract of insurance with Axa for the period 31 March 2002 to 30 March 2003 did contain an express term excluding liability for terrorism, in the terms 'Terrorism exclusion (wording to be agreed)', as set out in Axa’s 20 March 2002 fax. There was no agreement to remove this exclusion, and the term was sufficiently certain to be effective.

Court Disposition

Declaration granted in favour of Axa

Orders

  • It is declared that the public and products liability sections of RBS’s primary contract of insurance with Axa for the period 31 March 2002 to 30 March 2003 contained an express term: 'Terrorism exclusion (wording to be agreed)'