3. Perils Flashcards
To constitute under a fire claim, there must be what?
- Actual Ignition
- Something on fire which shouldn’t have been on fire
- No connection between the insured and the fire
Would damage to the property caused by scorching or smouldering be covered under the fire peril?
No, as no ignition occurred.
Potentially AD.
Explain Harris v Poland 1941 case
- Relates to fire peril
- Jewellery placed under fire grate & forgotten about
- Judge ruled that this can be considered under fire policy as jewellery not supposed to be on fire.
Explain Commonwealth Smelting Ltd v Guardian Royal Exchange Assurance (1984) case
- Relates to explosion peril
- Case held that an explosion was an event which was “violent, noisy & caused by rapid chemical or nuclear reaction or the bursting out of gas or vapour under pressure.”
Explain Aegis Electrical & Gas International Services Company Ltd v Continental Casualty Company (2007) case
- Relates to explosion peril
- Court held that what was required for an explosion was “manifest violence & a shattering destruction.”
What is useful to determine whether lightning peril should be applied in a claim?
- Report from electrical expert
- Weather reports
When are claims presented following a lightning strike?
When there is damage to electrical appliances and wiring
Explain Young v Sun Alliance & London Insurance Ltd (1976) case
- Relates to Flood peril
- Defines what flood means - Court of appeal held that word “flood” means a rush of water brought about by severe weather conditions
Explain Rohan Investments Ltd v Cunningham (1998) case
- Relates to Flood peril
- PH flat damaged by ingress of water from heavy rainfall over period of days
- Case = flood does not have to be violent rush of water occurring in short space of time, can be due to abnormal volume of rainfall
Which flood case does FOS favour?
Rohan Investments Ltd V Cunningham (1998)
Explain Oddy v Phoenix Assurance (1966) case
- Relates to storm peril
- Judge held that “storm means storm and to me connotes some sort of violent wind usually accompanied by rain or hail or snow”.
- Must involve violent wind
Explain S&M Hotels v Legal & General Assurance Society (1972) case
- Relates to storm peril
- Thesiger J - “ storm must be something longer and widespread than a gust of wind.”
What is FOS two tier test for storm?
- Employ but for test
1. Determine proximate cause of damage
2. Followed by common sense review of evidence - Useful to determine wear & tear or storm
What needs to be determined on an EOW claim?
- Exact cause of leak
- Confirmation leak repaired
- LA to be satisfied with PH attempt to repair leak as soon as they were aware
Can dry rot be considered under an EOW claim?
- Yes however, consideration needed:
- length of time of leak & whether PH would have known
The Public Order Act 1986 defines riot as comprising of what elements?
- 12 or more persons, present together. Threaten unlawful violence for a common purpose and conduct them. Cause persons on scene to fear for personal safety.
- Irrelevant whether or not 12+ use or threaten unlawful violence.
- No common purpose may be inferred by conduct
- No person of reasonable firmness be present at scene
- May be committed in public & private areas
How does the Insurer decide whether the riot peril has operated?
Using the Public Order Act 1986 defining elements
What is Malicious Damage?
Caused deliberately or perhaps accidentally by trespassers
What does the MD cover usually exclude?
- Damage caused by malicious persons
- Damage caused by tenants
- Damage caused by persons legally on premises eg invited visitors
What does the Theft Act 1968 define theft as?
Person guilty of theft if he dishonestly appropriates property belonging to another with the intention of permanently depriving the other of it.
The thief and steal shall be constructed accordingly
Explain the R v Ghosh (1982) case
-Relates to theft
- Test of what is considered to be dishonest appropriation was explored. Test to be applied is:
- Whether they acted dishonestly by standard of ordinary & honest people
- Whether they realised that what they were doing was by standards dishonest
Explain drain aspect to damage to underground services
Underground pipe taking foul or surface water from a single property. Responsibility of private owner.
Explain private sewer aspect to damage to underground services
Underground pipe taking foul or surface water from two or more properties ie shared private drains
What happens to any private sewer built after 01/10/1937?
Responsibility of the local water authority and not the responsibility of the owners.
