We were retained by an international cricketer who was insured under a sports personal accident policy. Our client had suffered an injury which prevented him competing in a tournament, meaning that he lost a substantial fee.
Insurers argued that any claim arising from the injury was excluded because it was a condition which existed prior to the inception of the policy.
We argued that the policy only excluded cover for pre-existing injuries that, at the time the policy incepted, were likely to result in the incapacity of the policyholder during the policy period. Therefore, if the insurer’s interpretation of the policy was correct, it would render the policy so restrictive as to be meaningless.
A satisfactory commercial settlement was reached.