Allianz Insurance Company Egypt v Aigaion Insurance Company S.A.

Allianz Insurance Company Egypt v Aigaion Insurance Company S.A.

A binding contract of reinsurance was concluded by 2 April 2005 on the terms agreed, including the deferred premium clause as understood from the underlying insurance. The absence of direct payment to Aigaion did not terminate the cover, as no cancellation notice was served. Section 53(1) of the Marine Insurance Act 1906 does not deem the assured to have paid the premium merely by payment to the broker.

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 Insurance/reinsurance Dispute / Judgment After Trial
Outcome
Judgment for the claimant (Allianz)
Legal Topics
Reinsurance Contract Formation, Premium Payment Warranties, Marine Insurance, Broker Liability, Interpretation of Marine Insurance Act 1906
Insurance Law Contract Law Commercial Law Reinsurance Contract Formation Premium Payment Warranties Marine Insurance Broker Liability Interpretation of Marine Insurance Act 1906

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Parties

Allianz Insurance Company Egypt

Claimant/reinsured

Aigaion Insurance Company S.A.

Defendant/reinsurer

Procedural Posture

Commercial Insurance/reinsurance Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether a binding contract of reinsurance was concluded between Allianz and Aigaion by 2 April 2005
  2. 2 Whether the absence of a premium payment to Aigaion terminated the reinsurance cover before the casualty
  3. 3 Whether section 53(1) of the Marine Insurance Act 1906 deems payment of premium to the reinsurer when paid to the broker

Ratio Decidendi

A binding contract of reinsurance was concluded by 2 April 2005 on the terms agreed, including the deferred premium clause as understood from the underlying insurance. The absence of direct payment to Aigaion did not terminate the cover, as no cancellation notice was served. Section 53(1) of the Marine Insurance Act 1906 does not deem the assured to have paid the premium merely by payment to the broker.

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.