Was Heath Lamberts claim time barred?
The 6 year limitation period applicable to Heath Lambert’s claim commenced when the cause of action against the defendants accrued. The judge acknowledged the general rule that an insurance premium becomes due when the risk attaches, but held that the effect of the premium warranty clause was to create a 90 day period of credit. However, even allowing for that factor, it was held that, with the exception of the premium due for the final extension, Heath Lambert’s proceedings had been commenced too late to protect the claims from becoming time barred. It was further held that Heath Lambert had failed to make good their argument that, in the correspondence exchanged between the parties prior to proceedings being commenced, the defendants had acknowledged their indebtedness for outstanding premium. (Had they done so, section 29(5) of the Limitation Act 1980 would have caused the limitation period to be calculated from the date of the acknowledgement.) The judge found that neither of the d
