ABSTRACT
This chapter focuses on the fundamental principle of insurance law, that the insured must not voluntarily bring about the insured event. Public policy is an amorphous concept which has been described as an ‘unruly horse.’ Assisting principles as to the scope and application of public policy emerge from the common law. The discussion on public policy is also relevant to fraudulent claims as the insured’s duty of utmost good faith continues beyond the point when the contract of insurance is concluded and renewed and operates when an insured seeks to claim against the insurer for loss. If the deliberate act of the insured is criminal in nature, then even where the insured’s act did not proximately cause the loss, a claim may be denied on the basis of public policy. The House of Lords, despite the express provision, refused to uphold the contract which was considered to be contrary to public policy.
