C&E own a chain of retail stores and an annual turnover of 3.8mollion last year.

it has multi risk property and liability policy that stats:

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 a C&E retail manager closed the store and thought he had activated the burglar alarm. During the night a break in occurred but the alarm failed to work. The manager believes the alarm may have been faulty.

the break in resulted in loss of cash from the safe office. The safe was opened using the keys left in the office. Ce make a claim from the loss of cash from the safe.

Questions:

A)

discuss the effect on both the policy and the claim, of the failure of the burglar alarm. Refer to one statue in support of your answer?

b)

expalin with justification the effect on both the policy and the claim, of the managers failure to remove the safe keys from the office premises?