AN INSURANCE company has won a court challenge to its decision not to pay out on an insurance policy over a fire at the home of a Limerick man who they say did not disclose that he was connected to alleged serious criminal matters.
Justin Casey, (32) with a current address in Garryowen, had claimed €30,000 on an insurance policy after a fire in June 2007 at his then home in Pineview Gardens, Moyross. The claim made in respect of the contents of the house as Mr Casey’s personal belongings were destroyed.
He was not in the house at the time as he was on remand in at Limerick Prison in connection with an alleged serious offence for which he was later acquitted.
Aviva Insurance declined to pay out on the policy and citied Mr Casey’s failure to “contemporaneously disclose a moral hazard”.
During a contested hearing at Limerick Circuit Civil Court, Henry Downing BL counsel for Aviva, challenged Mr Casey over disclosures he made on the insurance proposal form.
He specifically asked if Mr Casey had been involved in criminal matters such as theft, fraud, arson and robbery.
Mr Casey said at that time the only convictions he had were for road traffic matters and littering.
While he was on remand awaiting trial at Limerick Prison, Mr Casey said that he found out that Aviva were not paying out on his claim and he contacted a solicitor.
He denied being involved in serious criminal activity, gangs or firearms. He also denied being at a New York firing range to better his firearms proficiency and said that he was part of a stag party that visited the venue.
He denied involvement in a feud when houses, cars and property were targeted in arson attacks.
Sgt Andrew O’Riordan said that between 2005 and 2007, he was stationed in Mayorstone Garda Station as a detective and investigated serious crimes including murders, rapes and arson attacks.
He objected to Mr Casey getting bail when he appeared on a charge at Limerick District Court in March 2007 as Gardaí feared he was involved in criminal activity, had access to certain items and went to New York in February 2007 to become proficient in the use of firearms at a firing range.
Emmett O’Brien BL, counsel for Mr Casey, said that at the time of filing out the proposal, Mr Casey had minor convictions for road traffic matters and a litter offence – neither of which were outlined on as requirements to disclose on the proposal form.
Mr O’Brien said that it was two years after the fire that Mr Casey was convicted of a serious offence.
However, Mr Downing said there was the principle of moral hazard and a general obligation on the person to state in the proposal form any other facts that would influence a prudent insurer.
These facts were not disclosed and this amounted to a breach of contract.
Dismissing the claim, Judge Brian O’Callaghan said Mr Casey should have disclosed all matters to Aviva.
