Event Insured Flashcards
What is the rule in Bereseford v Royal Insurance Company [1938]?
There is a rule that the insured cannot deliberately cause the loss insured against.
Insured insured his life five times then committed suicide. The court held it was contrary to public policy to have the insurance company pay out to the executors of the insured.
What happens if the insured event was partly caused by the actions of the insured?
The answer varies from case to case and the wording of the policy:
see cases below
Dhak v Insurance Co, of North America (UK) Ltd. [1996]
The insured had sustained a back injury at work. She began experimenting with strong alcohol to relieve the pain. Six months into her experiment she died by choking on her own vomit. The court held the insurer was under no liability to pay on the basis that the insurance contract stated that payment was only due if bodily injury was caused by accidental means.
⁃ Since the insured had deliberately engaged in a calculated risk by intoxicating herself, this was not accidental and thus the insurer was not liable.
Connelly v New Hampshire Insurance Co 1997
Fireman claimed he was unfit for work on the basis that he was suffering from PTSD after attending fire. The policy covered ‘accidental bodily injury’. The court distinguished this from Dhak and held that the violent shock constituted accidental bodily injury. Therefore the insurer’s were liable to pay.
