COMMERCIAL UNION ASSURANCE CO PLC V SUN ALLIANCE INSURANCE GROUP PLC GUARDIAN ROYAL EXCHANGE PLC

(1993) 2 Re LR 52

Queen’s Bench Division Commercial Court

Before Mr Justice Steyn

Reinsurance - Wording - “with 120 days NCAD” - Whether contract automatically renewed if prescribed notice of cancellation not given.

Estoppel - Estoppel by convention - Whether evidence clearly and unequivocally established agreed interpretation of wording “with 120 days NCAD” in reinsurance contracts.

Reinsurance - Indemnity - Payment by original insurer in respect of material damage - Whether made under legal liability - Whether fronting insurer liable to reimburse insured - Whether, where original insurer prima facie not bound to indemnify insured, insured would have been entitled to rectification of policy.