ENE Kos 1 Ltd v Petroleo Brasileiro SA (No 2) [2012] UKSC 17; [2012] 2 AC 164
Citation:ENE Kos 1 Ltd v Petroleo Brasileiro SA (No 2) [2012] UKSC 17; [2012] 2 AC 164
Rule of thumb:If there is more than one cause of a loss under an insurance policy, one cause of which is included under the insurance policy and the other cause of loss is excluded, are the insurers liable to pay out? Yes, as long as the included cause of loss is not de minimis then the insurer is still liable to pay out.
Judgment:
If there is more than one cause of a loss and there is only one policy to covers one of the grounds of the losses then this insurer is liable in full for the losses – this has been reaffirmed.
Ratio-decidendi:
‘where there are two effective causes, neither of which is excluded but only one of which is insured, the insurers are liable’, Lord Clarke at 74
Warning: This is not professional legal advice. This is not professional legal education advice. Please obtain professional guidance before embarking on any legal course of action. This is just an interpretation of a Judgment by persons of legal insight & varying levels of legal specialism, experience & expertise. Please read the Judgment yourself and form your own interpretation of it with professional assistance.