Court of Appeal confirms insured’s entitlement to a declaration of indemnity for cost of reinstatement of property damaged by fire

In Great Lakes Reinsurance (UK) SE v Western Trading Limited [2016] EWCA Civ 1003 the Court of Appeal confirmed that the court may make a declaration that an insured under a property insurance policy is entitled to be indemnified for the cost of reinstating property damaged by an insured peril, particularly in circumstances where it … Read more

Insurance Act 2015 comes into force today

Today marks the day that the Insurance Act 2015 (the “Act”) comes into force.  This is the most significant reform of UK insurance law in over 100 years.  From today, the Act will apply to all new insurance and reinsurance policies that are entered into (including renewals) and to any variations agreed to existing policies … Read more

Better rights against insurers of ‘insolvent’ entities – finally here

A key question in any litigation is whether the defendant can satisfy a judgment.  Where the defendant is both insolvent and insured a further issue is whether the claimant can ultimately recover payment from the insurer.  This may be possible under the Third Parties (Rights against Insurers) Act 1930 (“1930 Act“) but there are a … Read more

Getting insured values wrong under the Insurance Act 2015: can insurers avoid the policy, apply average or even ‘double-dip’ with proportionate remedies?

Property and business interruption insurance policies commonly include an average clause permitting the insurer proportionately to reduce the value of the claim for underinsurance. The Insurance Act 2015 provides the insurer with proportionate remedies for breach of the duty of fair presentation, including a right to reduce claims if it would have charged a higher … Read more

Insurer’s subrogation rights in relation to leasehold premises revisited

In Elizabeth Frasca-Judd v Galina Golovina [2016] EWHC 497 (QB), the High Court has held, applying Mark Rowlands v Berni Inns Limited [1986] QB 211, that where a landlord insured property for the benefit of herself and her tenant, the insurer could not bring a subrogated claim against the tenant for damage caused by breach of contract and/or … Read more

New right for policyholders to claim damages for late payment of insurance claims

The Enterprise Act 2016 (“the Act”) received Royal Assent yesterday. Among other reforms, the Act changes English law’s approach to remedies for late payment of insurance claims and now gives policyholders a potential right to claim damages in the event of late payment. These provisions will come into effect on 4 May 2017, and will … Read more

Court of Appeal construes aggregation provision in minimum terms and conditions of professional indemnity insurance

The Court of Appeal has varied the decision of the High Court in AIG Europe Limited v OC320301 LLP and Others [2015] EWHC 2398 (Comm) and provided further guidance on the construction of the aggregation clause contained in the Minimum Terms and Conditions of Professional Indemnity Insurance (as published by the Solicitors' Regulation Authority) required to … Read more