Ted Baker Plc v AXA Insurance UK Plc (UK Court of Appeal


Generally speaking, it is trite law that the insurer has no duty to inform an insured about an alleged breach of policy warranties and conditions. However, on the particular facts of this case, the insurerwas stopped from relying on the insured's breach of duty to provide certain documentation to the insurer. This is becausethe insurer had not insisted on compliance with such duty at the claims investigation stage, notwithstanding insurer's continuing reservation of rights. On the facts, the insurer's claims handler had originally requested various documentation to assess the merits of the insured's claim. However, facing some opposition by the insured, the insurer agreed to take instructions on the provision of several (but not all) documentation and revert. Subsequently, whilst the insured had made clear that it believed that the process of the provision of all requested documentation had been frozen until the insurer reverted as above, the insurer failed to correct such insured's impression.

The Court held that it would have expected from a reasonably honest and responsible insurer to have corrected insured's impression and explicitly pointed out insured's ongoing breach. That is more sosince the provision of aforementioned documentation was a condition precedent to the insurer's liability.