Allianz Insurance Company Egypt v Aigaion Insurance Company S.A. [2008] EWHC 1127 (Comm) (02 June 2008)

Allianz Insurance Company Egypt v Aigaion Insurance Company S.A. [2008] EWHC 1127 (Comm) (02 June 2008)

A binding contract of reinsurance was concluded between Allianz and Aigaion by 2 April 2005, with the deferred premium clause being sufficiently certain by reference to the underlying insurance. Non-payment of premium by the broker did not automatically terminate the cover, as no cancellation notice was served. Section 53(1) of the Marine Insurance Act 1906 does not operate to deem payment to the broker as payment to the reinsurer for the purpose of avoiding policy lapse for non-payment.

Citation
[2008] EWHC 1127 (Comm)
Parties
Claimant/reinsured: Allianz Insurance Company Egypt; Defendant/reinsurer: Aigaion Insurance Company S.A.
Jurisdiction
England and Wales
Judgment Date
02 June 2008
Procedural Posture
Commercial Court Claim / Judgment After Trial
Outcome
Judgment for the claimant (Allianz)
Legal Topics
Reinsurance, Premium Payment Warranties, Marine Insurance, Broker Liability, Contract Formation, Policy Interpretation
Insurance Law Contract Law Maritime Law Reinsurance Premium Payment Warranties Marine Insurance Broker Liability Contract Formation +1 more

Case Brief

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Parties

Allianz Insurance Company Egypt

Claimant/reinsured

Aigaion Insurance Company S.A.

Defendant/reinsurer

Procedural Posture

Commercial Court Claim / Judgment After Trial

Legal Issues

  1. 1 Whether a concluded contract of reinsurance existed between Allianz and Aigaion as of 2 April 2005
  2. 2 Whether the contract was vitiated by uncertainty regarding the 'Deferred Premium Clause'
  3. 3 Whether non-payment of premium by the broker (Chedid) terminated the reinsurance cover prior to the casualty

Ratio Decidendi

A binding contract of reinsurance was concluded between Allianz and Aigaion by 2 April 2005, with the deferred premium clause being sufficiently certain by reference to the underlying insurance. Non-payment of premium by the broker did not automatically terminate the cover, as no cancellation notice was served. Section 53(1) of the Marine Insurance Act 1906 does not operate to deem payment to the broker as payment to the reinsurer for the purpose of avoiding policy lapse for non-payment.

Court Disposition

Judgment for the claimant (Allianz)

Orders

  • Aigaion to pay Allianz US$ 675,000.00 minus net premium due of US$ 53,496.30 plus interest.
  • Ancillary matters to be dealt with at a later hearing.