Mr Andy has recently purchased a 4 bedroom house in Bristol. He has spent his life savings to purchase this house and thus he wants to secure himself against any possible risks through a comprehensive home insurance policy. He further plans to let one of the rooms in the house to a student for a monthly rental amount of 500 pounds. He is not happy with the structure of the living room thus he has also scheduled some structural alterations with the help of the builder in the course of the next six months.

With regards to the home insurance, he is currently in the process of looking at various policy options and has already secured a home insurance policy from AXA. He has received the policy document from AXA and he has started paying premiums on a regular basis.

To secure himself further, he also wants to purchase another home insurance policy from a different company i.e. Aviva and he is currently in the process of evaluating the terms and conditions/clauses of the draft policy to determine his rights and obligations under the Aviva policy. He is looking through the website of Aviva for an example of the draft policy wording.

With regard to the policy wording on the Aviva website, he is not able to understand the wording of the policy correctly. He is also further concerned that if he does not understand the terms of policy correctly, he might face possible issues in the future for the sanction of the claim.

Thus he needs your advice on the details of the following clauses, which might be present in the draft policy wording of Aviva:

Disclosure of material circumstances required on the part of Andy (the insured)

The subrogation rights of the insurer (if any)

Contribution clause in the policy (if any)

Please read through the following personal circumstances of Mr Andy while framing your analysis:

Andy is planning to let one of the rooms in the house to a student.

Andy might undertake some structural alterations as he is not happy with the structure of his current living room

Andy has already secured another policy cover with AXA on the same property.

How to approach your case study?

(a) Based on your conceptual understanding, examine the draft policy wording of the Home insurance policy available on Aviva website and further attempt to identify and evaluate the clauses that qualify as disclosure of material circumstance, subrogation and contribution.

(b) Based on your legal understanding, your discussion should be also supported by relevant and valid reasons as to why the clauses in the draft wording might qualify as disclosure of material circumstance, subrogation and contribution.

(c) If you think that any of the above clauses are not present in the policy wording, highlight your arguments accordingly and ensure that these arguments are supported by relevant reasoning.

(iii) How to access the draft policy wording?

Go to aviva.co.uk

Then go to the section of home insurance- then go the section of ‘get a quote’

Once you click on the quote, you will find ‘further information’ tab on the right side

Under further information tab, you will find ‘home insurance policy wording’

You can download the document and read it for further analysis.

This is an individual coursework

Format: Case Study

A brief description of the expected content and layout: You may follow the content and layout as below:

Case study title

Table of contents

Introduction

Address the key case study requirements

conclusion

Reference list

Module learning outcomes assessed by this task:

Identify and apply appropriate sources of legal and financial regulation.

Apply the legal principles governing claims, including indemnity, subrogation, and contribution in contemporary insurance case scenarios.

Apply the principles of tort, agency and contract law to insurance scenarios.

Apply ethical principles, codes and frameworks in the context of the insurance business.