Gandy v Adelaide Marine Insurance Co

The plaintiff barque Annie was registered with Lloyd’s as A1 for 7 years. When the half time survey became due, the plaintiff declined to have the survey carried out, and informed Lloyd’s that he no longer wished the vessel to be registered with them. However, the plaintiff had previously effected a policy of insurance on Annie with the defendants, but did not inform them that the classification with Lloyd’s had lapsed. Thus, when Annie was later wrecked and totally lost, the insurers refused an indemnity under the policy because of the concealment of the change in the ship’s status.

The court ruled that the fact that the plaintiff had not retained Annie on the register at Lloyd’s was material, and should have been communicated to the underwriters.