IN THE SUPREME COURT OF JUDICATURE COURT OF APPEAL (CIVIL DIVISION) ON APPEAL FROM THE HIGH COURT OF JUSTICE CHANCERY DIVISION
Qayyum Ansari V New India Assurance Limited
Neutral Citation Number: [2009] EWCA Civ 93 Case NO A3/2008/1317
Lord Justice Waller, Lord Justice Thomas and Lord Justice Moore-Bick, 18 February 2009
Mr. Timothy Saloman Q.C. and Mr. Jeffery Terry (instructed by Mubasher Khan of HSK LLP) for the appellant.
Summary:
Insurance – Buildings – Insurance against fire – Policy term removing cover in the event of any material alteration to buildings or to facts stated in proposal form – Non-invalidation clause permitting recovery if assured unaware of alteration – Sprinkler system not operative and tenant changing use of buildings – Whether breach of policy term – Whether assured could rely on non-invalidation clause It is common for insurers to insert provisions into policies requiring increases of risk during the policy to be notified to insurers and terminating cover if notification is not given. The English courts have often given such clauses a narrow construction. However, in Qayyum Ansari v New India Assurance Ltd [2009] EWCA Civ 93, the Court of Appeal upheld the first instance decision that an appropriately worded policy term could widen the basis upon which a change in the risk might provide grounds for insurers to discharge the policy.