ABSTRACT

This chapter will consider a very special and controversial area of section 41, that is, whether the English courts recognise or should recognise foreign law illegality in marine insurance. Based on former authorities, it is implied in section 41 that the English courts do not recognise a breach of foreign law as a breach of the warranty of legality. However, in other areas of common law, when dealing with whether foreign law illegality should be recognised, the English courts have adopted another approach. Therefore, what are the differences between these two approaches and should this area of section 41 be reformed as well if common law rules were applied in marine insurance cases?