TKC London Ltd v Allianz Insurance PLC

TKC London Ltd v Allianz Insurance PLC

Temporary closure due to COVID-19 Regulations does not constitute 'accidental loss of property' under the policy, as 'loss' requires physical deprivation or damage, not mere loss of use. Deterioration of stock is excluded by inherent vice and gradual deterioration clauses. The material damage proviso is not satisfied as TKC had no separate insurance covering the property loss. The claim is misconceived and bound to fail.

Parties
Claimant: TKC London Limited; Defendant: Allianz Insurance Plc
Jurisdiction
England and Wales
Judgment Date
15 October 2020
Procedural Posture
Commercial Insurance Claim / Summary Judgment/strike Out Application
Outcome
Claim struck out; summary judgment for defendant
Legal Topics
Business Interruption Insurance, Policy Interpretation, COVID 19 Regulations, Exclusions (inherent Vice, Gradual Deterioration)
Insurance Law Contract Law Business Interruption Insurance Policy Interpretation COVID 19 Regulations Exclusions (inherent Vice, Gradual Deterioration)

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Parties

TKC London Limited

Claimant

Allianz Insurance Plc

Defendant

Procedural Posture

Commercial Insurance Claim / Summary Judgment/strike Out Application

Legal Issues

  1. 1 Whether enforced closure due to COVID-19 Regulations constitutes 'accidental loss of property' under the policy
  2. 2 Whether deterioration of stock is covered as 'damage' under the policy
  3. 3 Whether the policy's business interruption section responds to losses from closure

Ratio Decidendi

Temporary closure due to COVID-19 Regulations does not constitute 'accidental loss of property' under the policy, as 'loss' requires physical deprivation or damage, not mere loss of use. Deterioration of stock is excluded by inherent vice and gradual deterioration clauses. The material damage proviso is not satisfied as TKC had no separate insurance covering the property loss. The claim is misconceived and bound to fail.

Court Disposition

Claim struck out; summary judgment for defendant

Orders

  • Action dismissed
  • Parties to agree terms of order; if not, submissions to be lodged by specified dates