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Home/Law/Olivia owns an office premises. The office is insured under a commercial combined insurance policy, which states the following: ‘The burglar alarm must be maintained in full working order at all times and activated when the premises are unattended.’ ‘The insured must remove the safe keys from the premises when the premises are unattended.’ One evening, Olivia left the office and thought she had activated the burglar alarm. During the night a break in occurred, but the alarm failed to work. Olivia believes that the burglar alarm may have been faulty. The break in resulted in loss of cash from the safe in the office. The safe was opened using keys that had been left in the office. Olivia makes a claim for the loss of cash from the safe. Discuss the effect on both the policy and the claim, of the failure of the burglar alarm. Refer to one statute in support of your discussion.

Olivia owns an office premises. The office is insured under a commercial combined insurance policy, which states the following: ‘The burglar alarm must be maintained in full working order at all times and activated when the premises are unattended.’ ‘The insured must remove the safe keys from the premises when the premises are unattended.’ One evening, Olivia left the office and thought she had activated the burglar alarm. During the night a break in occurred, but the alarm failed to work. Olivia believes that the burglar alarm may have been faulty. The break in resulted in loss of cash from the safe in the office. The safe was opened using keys that had been left in the office. Olivia makes a claim for the loss of cash from the safe. Discuss the effect on both the policy and the claim, of the failure of the burglar alarm. Refer to one statute in support of your discussion.

Policy

All contracts have conditions or terms that guide the actions of the insured and insurer. In insurance law, different classifications of contractual relationships are applied, depending on the specific areas of legal jurisprudence which define a breach of terms. The effect of the failure of the burglar alarm on the policy and claim is negative in the sense that the policy should be suspended and the claim rejected. The suspension of policy recommendation is made because there is a breach of warranty or terms and conditions of the insurance contract. Indeed, under the commercial insurance cover, the burglar alarm should have been maintained in full working condition at all times, which was not the case. The precondition set out in Olivia’s contractual agreement to maintain the burglar alarm in working order and remove keys from the safe are linked with Section 11 of the Insurance Act 2015 because they are conditions that should be complied with to minimize risk. Therefore, the insurer should not be liable for any claims until this breach is remedied. Consequently, the policy should be suspended.

The failure to maintain the burglar alarm in working condition meets the criteria for “suspensive conditions” underpinning insurance contracts. It draws credence to IA 2015, which stipulates that the failure to meet conditions or contractual agreements amounts to a breach of contract and creates grounds for suspending a policy. Therefore, the failure to maintain the burglar alarm was not a condition but a “suspensive condition” that created grounds for suspending the insurance contract during the period that the breach occurred. Since the theft occurred during the period that the burglar alarm was not functional, contrary to the terms of the contract, the contract should remain suspended.

Claim

Based on the above circumstances, a recommendation is also made to reject the claim because the breach in terms and conditions would have led to the suspension of the policy. Under such conditions, any claims made on the same property should be rejected. The area of law relevant to the current case refers to non-compliance with insurance terms. It draws credence from Section 10 of the Insurance Act 2015, which defines procedures that should be followed when non-compliance with terms occurs. This policy provision often contains requirements for securing properties, especially when affected premises are not under the direct supervision of a storekeeper. Based on the above example, care should have been taken to ensure no admission of fault on the part of Olivia and her employer. However, this did not occur, and it prejudiced the terms of the insurance policy. Olivia’s ability to contest the case was significantly undermined by her negligent actions. Consequently, the claim should be rejected.

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Academic.Tips. (2022) 'Olivia owns an office premises. The office is insured under a commercial combined insurance policy, which states the following: 'The burglar alarm must be maintained in full working order at all times and activated when the premises are unattended.' 'The insured must remove the safe keys from the premises when the premises are unattended.' One evening, Olivia left the office and thought she had activated the burglar alarm. During the night a break in occurred, but the alarm failed to work. Olivia believes that the burglar alarm may have been faulty. The break in resulted in loss of cash from the safe in the office. The safe was opened using keys that had been left in the office. Olivia makes a claim for the loss of cash from the safe. Discuss the effect on both the policy and the claim, of the failure of the burglar alarm. Refer to one statute in support of your discussion'. 9 October.

Reference

Academic.Tips. (2022, October 9). Olivia owns an office premises. The office is insured under a commercial combined insurance policy, which states the following: 'The burglar alarm must be maintained in full working order at all times and activated when the premises are unattended.' 'The insured must remove the safe keys from the premises when the premises are unattended.' One evening, Olivia left the office and thought she had activated the burglar alarm. During the night a break in occurred, but the alarm failed to work. Olivia believes that the burglar alarm may have been faulty. The break in resulted in loss of cash from the safe in the office. The safe was opened using keys that had been left in the office. Olivia makes a claim for the loss of cash from the safe. Discuss the effect on both the policy and the claim, of the failure of the burglar alarm. Refer to one statute in support of your discussion. https://academic.tips/question/olivia-owns-an-office-premises-the-office-is-insured-under-a-commercial-combined-insurance-policy-which-states-the-following-the-burglar-alarm-must-be-maintained-in-full-working-order-at-all-time-2/

References

Academic.Tips. 2022. "Olivia owns an office premises. The office is insured under a commercial combined insurance policy, which states the following: 'The burglar alarm must be maintained in full working order at all times and activated when the premises are unattended.' 'The insured must remove the safe keys from the premises when the premises are unattended.' One evening, Olivia left the office and thought she had activated the burglar alarm. During the night a break in occurred, but the alarm failed to work. Olivia believes that the burglar alarm may have been faulty. The break in resulted in loss of cash from the safe in the office. The safe was opened using keys that had been left in the office. Olivia makes a claim for the loss of cash from the safe. Discuss the effect on both the policy and the claim, of the failure of the burglar alarm. Refer to one statute in support of your discussion." October 9, 2022. https://academic.tips/question/olivia-owns-an-office-premises-the-office-is-insured-under-a-commercial-combined-insurance-policy-which-states-the-following-the-burglar-alarm-must-be-maintained-in-full-working-order-at-all-time-2/.

1. Academic.Tips. "Olivia owns an office premises. The office is insured under a commercial combined insurance policy, which states the following: 'The burglar alarm must be maintained in full working order at all times and activated when the premises are unattended.' 'The insured must remove the safe keys from the premises when the premises are unattended.' One evening, Olivia left the office and thought she had activated the burglar alarm. During the night a break in occurred, but the alarm failed to work. Olivia believes that the burglar alarm may have been faulty. The break in resulted in loss of cash from the safe in the office. The safe was opened using keys that had been left in the office. Olivia makes a claim for the loss of cash from the safe. Discuss the effect on both the policy and the claim, of the failure of the burglar alarm. Refer to one statute in support of your discussion." October 9, 2022. https://academic.tips/question/olivia-owns-an-office-premises-the-office-is-insured-under-a-commercial-combined-insurance-policy-which-states-the-following-the-burglar-alarm-must-be-maintained-in-full-working-order-at-all-time-2/.


Bibliography


Academic.Tips. "Olivia owns an office premises. The office is insured under a commercial combined insurance policy, which states the following: 'The burglar alarm must be maintained in full working order at all times and activated when the premises are unattended.' 'The insured must remove the safe keys from the premises when the premises are unattended.' One evening, Olivia left the office and thought she had activated the burglar alarm. During the night a break in occurred, but the alarm failed to work. Olivia believes that the burglar alarm may have been faulty. The break in resulted in loss of cash from the safe in the office. The safe was opened using keys that had been left in the office. Olivia makes a claim for the loss of cash from the safe. Discuss the effect on both the policy and the claim, of the failure of the burglar alarm. Refer to one statute in support of your discussion." October 9, 2022. https://academic.tips/question/olivia-owns-an-office-premises-the-office-is-insured-under-a-commercial-combined-insurance-policy-which-states-the-following-the-burglar-alarm-must-be-maintained-in-full-working-order-at-all-time-2/.

Work Cited

"Olivia owns an office premises. The office is insured under a commercial combined insurance policy, which states the following: 'The burglar alarm must be maintained in full working order at all times and activated when the premises are unattended.' 'The insured must remove the safe keys from the premises when the premises are unattended.' One evening, Olivia left the office and thought she had activated the burglar alarm. During the night a break in occurred, but the alarm failed to work. Olivia believes that the burglar alarm may have been faulty. The break in resulted in loss of cash from the safe in the office. The safe was opened using keys that had been left in the office. Olivia makes a claim for the loss of cash from the safe. Discuss the effect on both the policy and the claim, of the failure of the burglar alarm. Refer to one statute in support of your discussion." Academic.Tips, 9 Oct. 2022, academic.tips/question/olivia-owns-an-office-premises-the-office-is-insured-under-a-commercial-combined-insurance-policy-which-states-the-following-the-burglar-alarm-must-be-maintained-in-full-working-order-at-all-time-2/.

Copy
Olivia owns an office premises. The office is insured under a commercial combined insurance policy, which states the following: 'The burglar alarm must be maintained in full working order at all times and activated when the premises are unattended.' 'The insured must remove the safe keys from the premises when the premises are unattended.' One evening, Olivia left the office and thought she had activated the burglar alarm. During the night a break in occurred, but the alarm failed to work. Olivia believes that the burglar alarm may have been faulty. The break in resulted in loss of cash from the safe in the office. The safe was opened using keys that had been left in the office. Olivia makes a claim for the loss of cash from the safe. Explain, with justification, the effect on both the policy and the claim, of Olivia's failure to remove the safe keys from the office premises.
You are a claims handler for an insurer specialising in household insurance. One of the policyholders has home insurance, which includes buildings and contents cover. When the insurance policy was incepted the policyholder confirmed the property was their permanent residence. The policyholder notifies you of a claim for water damage to the property and personal possessions. Whilst investigating the claim, you discover the following: The policyholder rents out the property on short-term lets, during which they temporarily vacate the property. However, the policyholder has never informed the insurer of this. The personal possessions are owned by a guest who had rented the property for the weekend. The policyholder has received a criminal conviction for burglary, although this conviction occurred after the inception of the policy. Discuss the effect on both the policy and the claim of the policyholder failing to inform the insurer of the criminal conviction.
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