The courts have recently considered an appeal by Ted Baker in its claim against Axa Insurance. Axa claimed that Ted Baker did not provide the documents Axa needed to investigate the claim and therefore had not complied with the terms of the policy.

When Ted Baker initially put in a claim after an employee stole thousands of pounds worth of stock, Axa requested certain documents including profit and loss and management accounts. However they never received them and used this to reject Ted Baker’s claim.

Upon investigating, the judge found that the provision of certain documents had been ‘parked’ as Ted Baker had argued it would be too expensive and time-consuming and would not incur the costs until coverage of reclaiming the costs was agreed.

As insurers have a duty to act honestly and responsibly the court found that it was Axa’s responsibility to remind Ted Baker about the missing documents. Nevertheless the court found that Ted Baker had not proved its claim and its appeal was dismissed.

The decision highlights that insurers should be transparent with regards to missing documents.