Hong Kong Case Law: Decisions & Judgments

Topic

Breach of policy conditions

Legal area

Court

13 Aug 2010

WING LUNG INSURANCE CO LTD v. NG BO YU AND ANOTHER

Citation

WING LUNG INSURANCE CO LTD v. NG BO YU AND ANOTHER
Court

District Court
Case number

DCCJ1320/2009

Defendants breached the policy by failing to notify prosecution and conviction, entitling the insurer to disclaim, but the insurer remained statutorily liable to the injured third party under the Motor Vehicles Insurance (Third Party Risks) Ordinance; the court found the settlement and associated costs reasonable and awarded the Plaintiff those amounts with interest and costs payable by the Defendants.
4 Aug 2008

LAI WING SUN v. HIGH LINK TECHNOLOGY LTD AND OTHERS

Citation

LAI WING SUN v. HIGH LINK TECHNOLOGY LTD AND OTHERS
Court

District Court
Case number

DCPI78/2006

The earlier court Order joining the insurer as a defendant was binding and established the insurer as a necessary/interested party with potential contingent liability under s.43 of the Employees' Compensation Ordinance; the plaintiff voluntarily pleaded a claim against the insurer and may discontinue that claim but cannot remove the insurer as a party without an application under Order 15 r.6(2)(a); consequently discontinuance of the pleaded claim against the 4th defendant was granted without prejudice to the joinder Order, and costs follow the usual rule with the plaintiff ordered to pay the…
7 Jul 2008

WING LUNG INSURANCE CO LTD v. WU SHU MAN t/a JAT SUN DECORATION ENGINEERING CO

Citation

WING LUNG INSURANCE CO LTD v. WU SHU MAN t/a JAT SUN DECORATION ENGINEERING CO
Court

District Court
Case number

DCCJ754/2008

Because Wing Lung lawfully took over the conduct of the employee's claims, produced documentary evidence that the settlements and costs were genuine and reasonable, and proper service had been effected on the absent defendant, the court awarded Wing Lung indemnity in respect of the settlement sums, its own costs and interest from the date of writ.
22 Oct 1993

EURO-AMERICA INSURANCE LIMITED v. SPEEDBIRD TOURS LIMITED

Citation

EURO-AMERICA INSURANCE LIMITED v. SPEEDBIRD TOURS LIMITED
Court

Court of First Instance
Case number

HCA6915/1992

Condition 6 was construed as relating to civil claims and did not encompass a guilty plea in criminal proceedings; condition 5 did not impose an obligation on the insured to forward or ensure forwarding of a summons received solely by a permitted driver where the insured lacked knowledge; on the facts the defendant did not know of the summons and did not breach the policy; consequently insurer not entitled to repudiate nor to recover the $65,000 payment or expenses and the plaintiff's claims were dismissed.
9 May 1986

PHOENIX ASSURANCE PUBLIC LTD CO v. MADAM HO FUNG CHING

Citation

PHOENIX ASSURANCE PUBLIC LTD CO v. MADAM HO FUNG CHING
Court

Court of Appeal
Case number

CACV19/1986

The recovery clause in the policy does not entitle the insurer to recover sums paid pursuant to a voluntary settlement because the insurer was not "obliged by the law" to pay that sum; s.9 prevents reliance on statutory policy conditions against the injured third party but does not convert a voluntary settlement into a statutory obligation to pay; moreover the insurer's conduct in negotiating and settling without timely repudiation gave rise to estoppel/waiver, barring recovery. Consequently the insurer's claim against the insured fails and the appeal is dismissed.
19 Dec 1980

THE ORIENTAL FIRE & GENERAL INSURANCE CO LTD v. CHEUK MA YEE

Citation

THE ORIENTAL FIRE & GENERAL INSURANCE CO LTD v. CHEUK MA YEE
Court

Court of Appeal
Case number

CACV75/1980

The Court of Appeal held that the insurer had established breach of the policy's notice requirements (Condition 1: failure to give written notice of intended prosecution and to forward summons) and that the insurer did not waive its right to rely on breaches by taking over the defence because it had given clear warnings and reserved its rights; consequently the insurer was entitled to repudiate liability and the appeal was allowed.
7 Nov 1977

KWAN ON FURNITURE CO (SUING AS A FIRM) v. MUTUAL UNDERWRITERS LTD

Citation

KWAN ON FURNITURE CO (SUING AS A FIRM) v. MUTUAL UNDERWRITERS LTD
Court

District Court
Case number

DCCJ2068/1977

The plaintiffs unreasonably delayed taking delivery and giving notice, thereby breaching express policy conditions requiring immediate steps and reasonable despatch; that breach prejudiced the insurer's position and entitled the defendant to refuse the claim.
26 Jul 1977

CHAN LAM-CHUN v. THE NATIONAL INSURANCE CO LTD

Citation

CHAN LAM-CHUN v. THE NATIONAL INSURANCE CO LTD
Court

Court of Appeal
Case number

CACV57/1976

Majority held that the insurers, having elected to take over and conduct the defence and having acted in ways that prejudiced the insureds (entering appearance and defence, amending pleadings, remaining on record and withdrawing at a late stage), waived any right to rely on the insureds' prior failures to assist; alternatively insurers had not made reasonable attempts to obtain cooperation, so they could not validly rely on breaches to defeat liability under s.2 Third Parties (Rights Against Insurers) Ordinance.
30 Jun 1973

ANGELA MARIA DIAS t/a CROWDEN TRADING CORPORATION v. NATIONAL INSURANCE CO LTD

Citation

ANGELA MARIA DIAS t/a CROWDEN TRADING CORPORATION v. NATIONAL INSURANCE CO LTD
Court

Court of First Instance
Case number

HCA2474/1972

Court found plaintiff gave timely notice by telephone on 18/5/71 and appointed surveyor; although strict compliance with some policy clauses was lacking, that non-compliance (except as to five crates damaged in sea transit) did not prejudice insurer because insurer, aware of the breaches, proceeded to solicit claim particulars and issued a claim form without reserving forfeiture; that conduct amounted to waiver or induced estoppel; accordingly insurer liable for damages subject to proof of quantum before the Registrar.