The Court of Appeal last week ruled in favour of Guardian General Insurance in an appeal by Apsara Restaurants as a result of a fire – which the High Court had said was deliberately set.
The insurance company had rejected a $6 million claim for loss under a fire commercial policy of insurance mainly on the basis of non-disclosure of material facts that were known by Apsara Restaurants Ltd.
The claim was in relation to the blaze which occurred in August 2007, months after the policy was in place, and destroyed Apsara’s leasehold improvements, restaurant equipment, furniture, contents and stock. Guardian General, in challenging the claim, contended that the non-disclosed facts had increased the level of risk that it had undertaken.
On Friday the Court of Appeal upheld the judgment of the High Court in dismissing Apsara’s challenge of that decision.
The High Court had found the sole shareholders and directors of claimant Apsara, were also the sole shareholders and directors of O’Meara Food Products Limited, a company registered in Trinidad and Tobago. The shareholders and directors had failed to disclose that a Fire and Special Perils Policy of Insurance had been cancelled and the premium returned. (AC)