Jurisdiction(s):
United Kingdom

Lonham Group Ltd v Scotbeef Ltd: Court of Appeal on warranties v representations, fair presentation, conditions precedent and contracting out under the Insurance Act 2015 (England and Wales)

Published on: 14 March 2025

Published by a LexisNexis Insurance & Reinsurance expert

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Article summary

Lonham Group Ltd v Scotbeef Ltd & another [2025] EWCA Civ 203

Traditionally, English insurance law placed onerous burdens on insured parties: they were required to reveal every material circumstance capable of affecting the judgment of a prudent insurer when setting the premium or determining whether to accept the risk. If they did not, the insurer could treat the policy as though it never existed.

Likewise, any failure to comply with a warranty discharged the insurer from liability under the policy, regardless of the warranty’s relevance to the risk and irrespective of whether the breach was later remedied.

In the early development of insurance, these severe rules were arguably justified by the informational imbalance between insured and insurer. By the twenty-first century, however, a more sophisticated market generated pressure for reform.

For non-consumer insurance, the result was IA 2015, which marked a substantial change in approach. The previous duty of disclosure was replaced by a duty of fair presentation, and only in defined circumstances could an insurer avoid the policy and reject claims...

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