Insurance Contract Interpretation

This Volume of the AIDA Europe Research Series on Insurance Law and Regulation focuses on transparency as the guiding principle of modern insurance law. It consists of chapters written by leaders in the respective field, who address transparency in a range of civil and common law jurisdictions, along with overview chapters. Each chapter reviews the transparency principles applicable in the jurisdiction discussed. Whether expressly or impliedly, all jurisdictions recognize a duty on the part of the insured to make a fair presentation of the risk when submitting a proposal for cover to the insurers, although there is little consensus on the scope of that duty. Disputed matters in this regard include: whether it is satisfied by honest answers to express questions, or whether there is a spontaneous duty of disclosure; whether facts relating to the insured’s character, as opposed to the nature of the risk itself, are to be presented to the insurers; the role of insurance intermediaries in the placement process; and the remedy for breach of duty. Transparency is, however, a much wider concept. Potential policyholders are in principle entitled to be made aware of the key terms of coverage and to be warned of hidden traps (such as conditions precedent, average clauses and excess provisions), but there are a range of different approaches. Some jurisdictions have adopted a “soft law” approach, using codes of practice for pre-contract disclosure, while other jurisdictions employ the rather nebulous duty of (utmost) good faith. Leaving aside placement, transparency is also demanded after the policy has been incepted. The insured is required to be transparent during the claims process. There is less consistency in national legislation regarding the implementation of transparency by insurers in the context of handling claims.

Causation is a crucial and complex issue in ascertaining whether a particular loss or damage is covered in an insurance policy or in a tort claim, and is an issue that cannot be escaped. Therefore, this unique book will assist practitioners in answering one of the most important questions in the handling of their insurance and tort claims. Through extensive case law analysis, this book scrutinises the causation theory in marine insurance and non-marine insurance law, and provides a comparative study on the causation test in tort law. In addition, the author expertly applies causation questions in concrete scenarios, and ultimately, this book provides a single volume solution to a very complex but essential question of insurance law and tort law. Causation in Insurance Contract Law also comes with a foreword written by Professor Robert Merkin. This book will be an invaluable guide for insurance industry professionals, as well as legal practitioners, academics and students in the fields of insurance and tort law.