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WISE (Underwriting Agency) Limited and Others -v- Grupo Nacional Provincial S.A.

July 2004

This case concerned the theft of a consignment of (mostly) Rolex watches, and reinsurers' attempt to avoid their policy on the grounds of non-disclosure of material facts.

At first instance, this attempt was successful (for the reasons summarised in the Bulletin Marine Insurance - Avoidance of Cover: Non-Disclosure which was published on this website in October 2003). However, the reinsured appealed. Whilst it was conceded that there had been non-disclosure of a material fact - and the majority of the Court of Appeal found both that reinsurers had not waived their right to such disclosure and that they had been induced to write the risk by the non-disclosure - the appeal was allowed. This was because the Court of Appeal decided (again by a majority) that reinsurers had forfeited their right to avoid the policy, having given an oral a notice of its cancellation at a meeting with the placing broker after the claim under the policy had been presented.

A more detailed summary of the Court of Appeal's judgment can be found in the latest Bulletin which has been added to our website: Marine Insurance - Avoidance of Cover: Waiver and Affirmation.

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