[2007] EWHC 458 (Comm)

Waiver by election can apply where an insurer fails to reserve its rights following the insured’s breach of a condition precedent in the policy. The insured tour operator failed to comply with the requirement to notify insurers immediately of the occurrence of any injury or damage. When the insured made a claim a year after a holidaymaker suffered an injury, the insurer referred to the late notification but went on subsequently in three letters to discuss tactics for dealing with the claim without reserving rights. This was an election to pay the claim and a reservation of rights made a month after notification was ineffective.