In July 2016, the Supreme Court held by a four to one majority in Versloot Dredging BV and another v HDI Gerling Industrie Versicherung AG and Others [2016] UKSC 45 that an insurer was not entitled to avoid payment where lies told by an insured were collateral to an otherwise valid claim.

In January 2010, the engine room of the ship DC Merwestone was flooded, causing damage of approximately €3.24m. The vessel’s manager, at a time when the cause of the flooding was unclear, incorrectly told insurers’ solicitors that the bilge alarm had sounded, but the crew had been unable to investigate the problem as the ship was rolling in ...

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