Attachment of the risk Flashcards
What are the requirements to claim under an insurance policy?
- Incurred a loss
- Loss occurred as a result of the risk insured against attaching to the subject matter insured or the peril evntuates.
What is the requirement of attachment of risk?
Risk must attach to the subject matter or the peril occurs.
Is there a common-law duty to disclose alteration of risk?
No unless the contract provides so.
What are the two situations in which a company has limited the extent of its liability?
- A promise qualified by exceptions
- A qualification/conditional promise.
What is the element of causation?
The insurance company will only accept responsibility if the loss suffered by the insured was caused (direct/dominant)) by the peril insured against.
Will an insurance company still be liable if the risk insured against arises as result of the insured’s own conduct?
It depends on whether it was an involuntary act, negligence or an intentional act.
What is the duty to avert happening of risk?
To avert the occurrence of peril or to at least minimise its effect.
What is attachment of risk?
The point at which the insurer’s risk under a policy begins.
What cases deal with the attachment of risk?
- London v Puzyna
- Sikweyiya v Aegis
What are the facts of London v Puzyna?
Puzyna insured paintings and a Persian carpet on a voyage from UK to Sa, risk attached when the items left the warehouse to be loaded on ship. Painting was found to be missing on arrival but was later found to be in the warehouse. Insurer offered to return the etching for the money paid out, Puzyna refused.
What are the facts of Sikweyiya v Aegis?
Insured had a policy for accidental injury including death, he was stabbed and insurer denied liability claiming death was not an accident.
What is the case for alteration of risk?
N&B Clothing Manufacturers v British Traders.
What are the facts of N&B Clothing Manufacturers v British Traders?
N&B had an insurance policy insuring certain property against loss by theft and robbery. The premises were entered into, and insured goods were stolen. The contract had a promissory warranty to maintain burglars; burglars were not maintained and could be lifted from their hinges.
What is the case for causation?
M&F v SMD Telecommunications
What are the facts of M&F v SMD Telecommunications?
Insurance contracted compensated SMD for the deat/disability of any of its managerial staff occurring as a result of bodily injury caused solely by violent, accidental, and visible means. There was an exception clause that excluded death/disability from a pre-existing physical defect. A managerial staff member got into a car accident and had a pre-existing condition.
