ClassyJudyWhen you buy insurance, whether it’s for your car, home, or even a yacht, you expect protection and peace of mind. But what if your insurer refuses to pay when something goes wrong? That’s exactly what happened in the pivotal case of Jordan v New Zealand Insurance Co Ltd (1992), a legal battle that reshaped how we view disclosure and fairness in insurance contracts.
Mr. Jordan had insured his yacht with New Zealand Insurance Co Ltd. Everything appeared in order—until the yacht sustained damage and he submitted a claim. To his surprise, the insurer denied the claim, stating that Jordan had failed to disclose important information when he first took out the policy.
But what exactly had he failed to disclose?
According to the insurer, Jordan omitted material facts, information that could have influenced their decision to provide coverage at all. The disagreement escalated all the way to the Privy Council, then the highest appellate court for New Zealand, where the core issue of disclosure in insurance was put under the spotlight.
ClassyJudy
