Overview

In the case of Ansari v New India Assurance Ltd, Mr Ansari owned commercial premises in Manchester. In May 2004, he completed a proposal form to obtain buildings insurance for the Premises with New India Assurance Ltd. On the proposal form, he stated that the business conducted at the Premises was "wholesaling kitchenware" and, in response to a question about whether the Premises were protected by an automatic sprinkler installation, he said yes. The Premises were duly insured and a policy issued which contained the following conditions:
the policy shall be voidable in the event of misrepresentation, misdescription or non-disclosure in any material particular (condition one);
the insurance would cease if there was any material alteration to the Premises or the Business or any material change in the facts stated in the proposal form or other facts supplied to the insurer (condition 2).
The policy also contained a non-invalidation clause. This provided that the insurance would not be prejudiced if any "act or neglect" increased the risk of destruction or damage without the owner's authority or knowledge. The owner was required to give written notice to the insurer on becoming aware of any such matter.
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