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It is not necessary to consider what course the court would have adopted if, before the policies had been brought to its attention, the ppi clause had been detached, and neither of the litigating parties had raised the point that such a clause had ever formed part of the policies, because, in the present case, evidence has been adduced on behalf of the liquidator which proves clearly that the ppi clause was attached to all the policies when they were signed and handed to the assured. In my judgment, the proper time to judge whether these policies are valid or void is at the time when they are issued.

However, in the case in question, Lloyd LJ was of the opinion that the clause on notification of claim14 was not one which could modify or exclude the equitable right to contribution. Legal and General Assurance Society Ltd v Drake Insurance Co Ltd [1992] 1 All ER 283, CA Two insurance companies insured the same driver under standard private car policies. Both policies provided that immediate written notice had to be given of an event which might give rise to a claim, observance of which was a condition precedent to liability, and that if there was ‘any other insurance covering the same loss’ when the claim arose, the insurers would not pay or contribute more than their rateable proportion.

And, in Richards v Forestal Land, Timber and Railways Co Ltd [1941] 3 All ER 62, HL, where goods aboard a German vessel were lost at the outset of the Second World War, when the ship was scuttled in order to avoid capture, Lord Wright had occasion to consider the purpose of a contract of insurance and the part the Act had to play in the construction of that contract. Lord Wright: [p 76] …The Act is merely dealing with a particular branch of the law of contracts—namely, those of marine insurance.

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