In the recently decided Supreme Court of Appeal case of Regent Insurance Company versus King’s Property Development, the court considered what was a material non-disclosure which would entitle an insurer to reject a claim on insurance.

In the case, King’s Property, the owner of a commercial building, insured the building against fire and other possible losses. Regent Insurance provided the insurance cover. The building burnt to the ground in 2010, and King’s duly lodged an insurance claim for approximately R10 million. Regent rejected the claim.

Regent stated that the building was let by King’s to a business which manufactured trailers using fibreglass and resin, both highly flammable materials. It had not been informed of this fact, and would not have agreed to insure the building had it been so informed. It alleged that it was not liable under the insurance policy as King’s had committed a material non-disclosure.

The fire had indeed arisen…