World Challenge Expeditions Limited v Zurich Insurance Company Ltd

World Challenge Expeditions Limited v Zurich Insurance Company Ltd

Zurich is estopped by convention from denying indemnity for refunds paid to Challengers for trips cancelled after 31 May 2020, subject to credit for third party recoveries. The policy, on its true construction, only covers irrecoverable third party costs, but Zurich's conduct and claims handling created a binding estoppel. Aggregation clause does not operate to reduce WCE's claim in these circumstances.

Parties
Claimant: World Challenge Expeditions Ltd; Defendant: Zurich Insurance Company Ltd
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Commercial Insurance Dispute / Final Judgment
Outcome
Claim partly allowed
Legal Topics
Policy Construction, Estoppel by Convention, Promissory Estoppel, Aggregation Clauses, Business Interruption, Claims Handling, Collateral Contract
Insurance Law Contract Law Estoppel Policy Construction Estoppel by Convention Promissory Estoppel Aggregation Clauses Business Interruption +2 more

Case Brief

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Parties

World Challenge Expeditions Ltd

Claimant

Zurich Insurance Company Ltd

Defendant

Procedural Posture

Commercial Insurance Dispute / Final Judgment

Legal Issues

  1. 1 Proper construction of the insurance policy
  2. 2 Whether Zurich is estopped from denying broader coverage
  3. 3 Application of aggregation clause

Ratio Decidendi

Zurich is estopped by convention from denying indemnity for refunds paid to Challengers for trips cancelled after 31 May 2020, subject to credit for third party recoveries. The policy, on its true construction, only covers irrecoverable third party costs, but Zurich's conduct and claims handling created a binding estoppel. Aggregation clause does not operate to reduce WCE's claim in these circumstances.

Court Disposition

Claim partly allowed

Orders

  • Zurich to indemnify WCE for refunds paid to Challengers for trips cancelled after 31 May 2020 and cancelled on or after 20 April 2020, subject to credit for third party recoveries.
  • Declaration that Zurich must indemnify WCE for future refunds paid in respect of such cancelled expeditions, subject to credit for recoveries.