i-law.com - Newsletter (Liability Risk and Insurance)

Brit makes £7.6mn profit #

01 May 2003

Brit Insurance Holdings has reported a net profit of £7.6mn for 2002, compared to a loss of £89.8mn in the previous year. Gross written premiums were £662.7mn for 2002, an increase of 77.2% over 2001...

US casualty market review from Aon #

01 May 2003

A snapshot of the US casualty market has been provided by Aon Risk Services of the Americas. In its latest insurance market overview, it says that while the casualty marketplace remains restrictive, pressure on pricing..

Hard casualty market into 2004 #

01 May 2003

Commercial insurance rates in the US, notably for casualty insurance, will continue to increase into 2004. This is according to a survey of over 100 risk managers carried out by Prudential Securities. More than half..

Professional lines team for XL Europe #

01 May 2003

XL Europe has formed a new professional lines underwriting team which will operate from its London branch. The new team will trade under the name XL Professional. The team will be staffed by the former..

PRI faces unwelcome bid from BRIT #

01 May 2003

Professional Risks Insurance Limited (PRI) is facing a takeover bid from Brit Insurance Holdings, the parent company of Brit Insurance Limited. The board of PRI initially said the move was unwelcome, and added that it..

Further volatility in EL/D&O in 2004 #

01 May 2003

While the insurance market in the UK should start to reach a plateau in 2004, and a consequent easing of rates, there will be volatility in some areas, notably employer’s liability and directors’ & officers’..

Risk managers disagree on corporate governance #

01 May 2003

US risk managers strongly disagree about what constitutes effective corporate governance, according to a survey by Allianz Global Risks. The survey found that 39% of respondents believe Sarbanes Oxley will significantly reduce corporate malfeasance, but another..

AIG hit by own D&O costs #

01 May 2003

Even insurers are hit by premium increases. US insurer AIG, has reported an almost 60% rise in the cost of the premium it pays to protect its own board and executive officers. AIG has been..

New D&O capacity but claims increase #

01 May 2003

New capacity is coming into the directors’ & officers’ (D&O) liability market, but claims continue to increase in frequency and severity. This is the view of Joseph Monteleone, vice president of claims at Hartford Financial..

D&O limit exhausted in Wickes trial #

01 May 2003

A defendant in the Wickes fraud trial has been left without D&O liability cover after the policy limit was reached. The defendant was one of five Wickes executives on trial for fraud, but his case..

Axa says EL rates must rise again #

01 May 2003

Research carried out by Axa Insurance has found that more than 210,000 small and medium-sized businesses in the UK were operating illegally without employers’ liability insurance cover, affecting around 1.8mn employees. The insurer warned that..

Remove disease risk from EL #

01 May 2003

At a recent conference, insurers and brokers called for disease risk to be stripped from employers’ liability policies and covered by a separate pooling arrangement. Broker Marsh said in its response to the government’s review..

AIOA joins IUA #

01 May 2003

The Aviation Insurance Offices Association (AIOA) is to be brought under the auspices of the International Underwriting Association (IUA). Outgoing AIOA chairman and underwriting executive at Global Aerospace Underwriting Managers, Peter Butler said in his..

Judge orders appraisal process for Silverstein #

01 May 2003

A New York federal judge has ruled that Larry Silverstein has to submit the dispute over the cost of the World Trade Center's destruction to a process that may result in an independent appraiser being..

Lloyd’s chairman in US litigation warning #

01 May 2003

The chairman of Lloyd’s, Lord Levene, has warned that the US litigation system, if left unchecked, will destroy the American spirit of enterprise and drain the US economy. Lord Levene has called for a change in..

Insurers add support to tort reform #

01 May 2003

The US insurance industry has been vocal in its support for tort reform in the US at the recent Risk & Insurance Management Society (RIMS) conference in Chicago. Maurice Greenberg, president & chief executive of..

Equitas settles asbestos claims #

01 May 2003

Equitas, the Lloyd’s run-off vehicle, has paid £472mn to Honeywell International in settlement of asbestos-related claims arising from Honeywell’s ownership until 1986 of NARCO. According to Honeywell, the Equitas deal and others will allow it..

Architects sued over insulation panel #

01 May 2003

Architect firm found liable for contributory negligence in factory fire, and owners awarded damages. The spreading of the fire was due to the negligence of the architects because of their specification of a combustible panel..

Liability Underwriters Group Conference Queens’ College Cambridge #

01 May 2003

9–11 September Details and registration facility appear on the Insurance Market Conferences website: www.risksociety.com or by tel/fax 01491 872839. ..

Money talks in litigation #

01 May 2003

A high court judge has attacked the legal system, saying that at ‘all stages in the litigation money talks loud and clear.’ The judge, giving a lecture at the University of Sheffield, was reported as..

Criminals cannot sue for damages #

01 May 2003

The Government is to bring in changes to the law which will mean that convicted criminals who are injured while committing a crime will be banned from suing their victims for compensation. The move comes..

Civil court fees increase #

01 May 2003

The Lord Chancellor’s Department has announced that civil court fees have been increased following a consultation process. According to the Department, the new fees retain a common scale of fees payable on the issue of..

FSCS appeals Geologistics’ ruling on Independent #

01 May 2003

The Financial Services Compensation Scheme (FSCS) has lodged an appeal against a recent judgement which it says is aimed at clarifying whether defence costs for corporate holders of compulsory insurance policies should fall under the..

Streamlined claims payment process #

01 May 2003

The Government has streamlined the process for making payments into court to settle a claim in a move designed to encourage the early settlement of claims. High Court actions payments are made direct to the..

SARS business warning #

01 May 2003

Asian insurers have warned businesses that they may not be covered for losses caused by workers being sick from severe acute respiratory syndrome (SARS), the atypical pneumonia sweeping the world. Insurers have stressed that government..

New unit for broker Acordia #

01 May 2003

US insurance broker Acordia has formed a Risk Finance Group offering client consultations and other insurance services to protect clients from the financial risks associated with corporate governance, errors and omissions, employment practice liability and..

RIMS survey confirms difficult D&O market #

01 May 2003

The Risk and Insurance Management Society (RIMS) has released results from its on-line Benchmark Survey of members, which show that D&O and fiduciary insurance continues to be difficult and expensive to procure, while property and..

Countries fail to implement directive #

01 May 2003

The European Commission is to take France, Luxembourg, Italy, the Republic of Ireland and Portugal to the European Court of Justice over failure to implement the European Union’s Fourth Motor Insurance Directive. The UK and..

Internet/email lawsuits survey #

01 May 2003

A survey by broker Assurex Global and Clearswift, a content filtering software provider has found that 19% of employers have battled lawsuits stemming from e-mail/Internet abuse, 31% have experienced the loss of confidential information/intellectual property..

Higgs report further undermined #

01 May 2003

Yet more evidence that the Higgs Report recommendations are to be watered down following an outcry from UK boardrooms. Patricia Hewitt, Secretary of State for Trade & Industry, has said that institutional investors should not..

New D&O products from ACE #

01 May 2003

ACE USA has launched a new range of management liability and errors’ & omissions’ insurance products. The new ACE Advantage errors and omissions insurance products provide coverage for public officials, school officials, architects and engineers,..

Auditors liability cap reject by EC #

01 May 2003

The European Commission has rejected a call from the ‘Big Four’ accounting firms for a limit on the amount that auditors can be sued for. The European Commissioner for financial services said that unlimited liability..

Insurers criticised for EL crisis #

01 May 2003

Patricia Hewitt, the Trade & Industry Secretary has called on insurers to deal with the employers’ liability crisis and ‘to get round a table with business to find solutions, or at least what to do..

ABI responds on liability reviews #

01 May 2003

The Association of British Insurers’ response to the Department of Work & Pensions review of employers’ liability insurance has called for the separate funding for long-tail occupational diseases, and better access to rehabilitation. Meanwhile, in response..

TUC report on race discrimination at work #

01 May 2003

A TUC report into race discrimination at work says that Britain’s black and ethnic minority workers believe that real progress has been made in combating race discrimination at work over the past 10 years, but..

New work-related death investigation protocol #

01 May 2003

A revised protocol for investigating work-related deaths has been published by the Health and Safety Executive (HSE), Crown Prosecution Service (CPS), Association of Chief Police Officers (ACPO), Local Government Association (LGA) and British Transport Police..

Accidents on school trips #

01 May 2003

Schools have been urged not to be deterred from running school trips and educational visits for fear of legal action in the event of an accident. The Health & Safety Executive (HSE) said, however, that..

HSE guidance for expectant mothers #

01 May 2003

The Health & Safety Executive (HSE) has launched new guidance to help protect the health and safety of new or expectant mothers at work. The guidance, ‘New and Expectant Mothers at Work – A guide..

Villagers allowed to sue for psychiatric injury #

01 May 2003

The villagers who claim to have suffered mental injuries after a plane crashed near their homes have been given the go-ahead to seek compensation. A Korean Airlines Boeing 747 crashed shortly after take off from..

New Aviation Health Unit set up #

01 May 2003

The Government is to set up a new unit for addressing health issues affecting air passengers and crew. The unit, which is being jointly established with the Civil Aviation Authority (CAA), will be based at..

Human error in Singapore collision #

01 May 2003

Singapore’s Maritime and Port Authority has ruled that the collision in January between a Singapore naval vessel, RSS Courageous, and a container ship, was caused by human error on the part of the naval ship...

Front of bill of lading preferred #

01 May 2003

The House of Lords has ruled that the information on the face of a bill of lading is to be preferred to inconsistent printed clauses on the back, when deciding whether the bill was an..

Toxic mould – latest update #

01 May 2003

Toxic mould claims in the US are still increasing and spreading, but the good news is that in Texas, claims are decreasing in number and value. A recent meeting of the Casualty Actuarial Society was..

‘Tonight Show’ star settles mould case #

01 May 2003

Ed McMahon, the former sidekick on the US ‘Tonight Show’, has accepted a settlement in a toxic mould lawsuit. He accepted $230,000 to settle the case from a clean up contractor. This was the last..

EC demands implementation of GMO directive #

01 May 2003

The European Commission has formally requested that France, Luxembourg, Belgium, Netherlands, Germany, Italy, Ireland, Greece, Spain, Portugal, Austria and Finland adopt and notify national legislation implementing EU law on the deliberate release of genetically modified..

Plastic cargo threat to Cornwall coast #

01 May 2003

Salvors have been struggling to remove a cargo of shredded plastic from RMS Mulheim which ran aground between Sennen and Land’s End. The cargo, 2,200 tonnes, was destined for a landfill site. Conservationists said that..

11 September fund unfair and arbitrary #

01 May 2003

The families of victims of the 11 September terrorist attack on the World Trade Center are asking for a ruling that the special federal compensation fund was unfair and arbitrary. The families’ lawyers are claiming..

Soldiers’ performance impaired by fatigue #

01 May 2003

A study carried out last year by the US Army found that stress caused by combat, combined with a lack of sleep, can result in soldiers being so impaired that they performed worse than if..

Captive insurer for WTC liabilities #

01 May 2003

New York state has announced new legislation which will allow for the formation of a pure captive insurance company by New York City to provide coverages for liability relating to or arising out of activities..

Mississippi’s legal system ‘most hostile’ #

01 May 2003

According to US lawyers, Mississippi’s legal system is the most hostile to business, followed by West Virginia, despite both states passing tort reform laws in 2002. The survey of lawyers for public corporations and insurance..

Jury awards in US personal injury #

01 May 2003

The latest report on US award trends in personal injury, relating to 2001, has found that jury awards in medical malpractice claims remained stagnant, and plaintiffs won fractionally more trials in 2001, compared with the..

Zurich warns on asbestos management plans #

01 May 2003

Zurich Municipal, the leading public sector insurer, has warned that changes in asbestos regulations could leave public sector bodies open to prosecution if precautionary measures are not put in place. Zurich is urging public sector..

Asbestos rift between insurers and reinsurers #

01 May 2003

There is a growing rift between insurers and reinsurers over asbestos exposures, according to a new report by Standard & Poor’s Ratings Services (S&P). The report says that ‘disputes between insurers and reinsurers appear to be..

Tobacco firm in US$12bn bond #

01 May 2003

A judge in Illinois has ordered tobacco firm Philip Morris to pay US$10.1bn for deceiving consumers by marketing light cigarettes as less harmful than regular cigarettes. The verdict includes US$3bn in punitive damages to be..

Ban on smoking in restaurants #

01 May 2003

Parliament has given a bill banning smoking in cafés and restaurants a first reading by 115 votes to 43. The Smoking (Restaurants) Bill was introduced by Labour MP Gareth Thomas, who said that second-hand smoke..

Passive smoking kills 1,200 a year in UK #

01 May 2003

New research has suggested that 1,200 people in the UK die each year as a result of passive smoking at work. The research, ‘A killer on the loose,’ was carried out by James Repace, an..

FSA figures on Specified Risk Material #

01 May 2003

The Food Standards Agency (FSA) has announced further findings of Specified Risk Material (SRM), the part of the animal most likely to contain BSE infectivity, in imported intervention beef. Under European Union law, SRM must..

BMA warns on sunbed use #

01 May 2003

The British Medical Association (BMA) is advising people not to use sunbeds because of potential health risks. The British Photodermatology Group (BPG) recommends that sunbeds are not used at all, but if they are used..

Anti-malarial tablets warning #

01 May 2003

A student who committed suicide after becoming depressed had taken anti-malaria tablets. An inquest into her death was not able to find any link but the girl’s parents said they thought that there was a..

Public inquiry call for X-ray dye #

01 May 2003

Campaigners are calling for an inquiry into the use of a dye used in X rays of back sufferers. The dye, made by Glaxo, was injected into the spine of back sufferers to enable X-rays..

Food container compound damages eggs #

01 May 2003

Scientists have discovered that bisphenol A (BPA), a compound found in plastic food containers, damages the eggs of mice. According to a study reported in Nature magazine, BPA acts like oestrogen and damages unfertilised eggs...

Stress means higher risk of stroke #

01 May 2003

Highly stressed people have an 89% higher risk of dying after a stroke compared, and those who felt stressed on a weekly basis also had a much greater risk of a fatal stroke. Danish researchers..

Heart disease risk for steroid drugs #

01 May 2003

Scientists have warned that people using anti-inflammatory steroid drugs, for example for asthma, rheumatoid arthritis and inflammatory bowel disease, are at a greater risk of heart disease. New research by the University of Dundee has..

Smallpox vaccine compensation programme #

01 May 2003

The US House and Senate have voted in a bill providing compensation for injuries or fatalities linked to smallpox vaccinations. The bill was deemed necessary because of concerns by US health and emergency workers over..

Mercury vaccines in autism link #

01 May 2003

Research in the US has found that mercury in some vaccines given to children may be a contributory cause of autism and heart disease. The researchers studied vaccines containing thimerosal, which is almost 50% mercury...

Critical premature baby report #

01 May 2003

A panel of paediatric experts has reported that inadequate hospital care may be resulting in the needless death of some babies. The report, ‘Confidential Enquiry into Stillbirths and Deaths in Infancy,’ pointed to a lack..

More skin cancer deaths in UK than Australia #

01 May 2003

Cancer Research UK has warned that thousands more Britons than Australians die from malignant melanoma despite the fact that more cases of this most deadly form of skin cancer are diagnosed Down Under. In the..

Compensation call for Scottish Hep C victims #

01 May 2003

A group of independent experts has called on Scotland’s health minister to reconsider compensation for people who contracted hepatitis C through contaminated NHS blood products. The group said that it welcomed proposals to make payments to..

Nurses in IV drug errors #

01 May 2003

A study by pharmacologists found that nurses made mistakes in administering nearly half the drugs they gave to patients intravenously. The study also found that a third of the errors were potentially harmful. Researchers studied..

Handbag waiving not breach of peace #

01 May 2003

In a case of alleged wrongful arrest and false imprisonment, a woman was arrested after waving a handbag at a police officer who had been investigating an allegation of common assault against a traffic warden...

Strict liability for animal owners #

01 May 2003

Owners of animals are strictly liable for damage or injuries caused by the animals where they behave in a way that is not normal for the species, but is normal in special circumstances. The case..

Judge wrong in principle over costs #

01 May 2003

The Court of Appeal ruled that in commercial litigation, a Judge should not have segregated out a large part of the costs before making a decision on who was the successful party and therefore entitled..

If not specified, costs not included #

01 May 2003

In a case where an action had already been settled, and an offer had been made, but it had not specified whether it included the cost of the preparation of the bill of costs, the..

Offer also required in appeal proceedings #

01 May 2003

The claimants made an offer to settle the claim which was refused. The claimants obtained judgment greater than the settlement offer, and the defendants were ordered to pay the claimants’ costs on an indemnity basis...

Referee owed duty of care to enforce rules #

01 May 2003

The Court of Appeal found that a referee in a rugby match owed a duty of care to the players to apply reasonable care in enforcing the rules. The court dismissed an appeal by a..

Future earnings and loss of chance of career #

01 May 2003

This case involving future lost earnings as part of a personal injury claim involving long term disability considered the issue of assessing the loss of chance of a future career. The court found that it..

Vulnerable victim assaulted despite consent #

01 May 2003

A defective prisoner was entitled to compensation from the Criminal Injuries Compensation Scheme after suffering indecent assault, even though he gave consent, unless that consent was real so as to prevent him being a victim...

Principal place of business #

01 May 2003

A company’s principal place of business was the place at the heart of the company’s operation, and not necessarily where most business was carried out. The case involved an employee who was dismissed from a..

No damages for secondary victims #

01 May 2003

A road worker who was sent to the scene of a road accident by his employer was a secondary victim and therefore not entitled to damages for negligence after suffering post-traumatic stress disorder. The decision..

Indemnity costs awarded #

01 May 2003

A claimant’s offer to settle was rejected and after a long trial, the judgment was more advantageous to claimant than offer. The claimant appealed seeking indemnity costs. The Court of Appeal upheld the appeal, and..

Remedial work required if no depreciation payment #

01 May 2003

In a case over damage to property from a landslide caused by mining subsidence, the Court of Appeal found that the Coal Authority was required to carry out remedial work where it had not chosen..

Interim costs refused #

01 May 2003

Judge refused to grant an order for an interim payment of costs because court had not heard the full trial of the action. Hoover paid a settlement of £4mn to Dyson just before a hearing..

Part 36 payments and Recovery of Benefits #

01 May 2003

An appeal against a decision to reduce personal injury damages by one third due to contributory negligence, and a decision to order the claimant to pay costs, was upheld. At issue was a Part 36..

Written advice not necessary #

01 May 2003

Claimants awarded nominal damages of just £2 against a firm of solicitors. The firm had faced a number of claims of negligence from the claimants, but only one had been proved. The claimants argued that the..

Causal link only for racial discrimination loss #

01 May 2003

A victim of racial discrimination only needed to show a causal link between the loss for which compensation was claimed, and the discrimination, and did not need to show that it was reasonably foreseeable. The..

Road rage settlement #

01 May 2003

A motorist who was badly injured when he was run down in a road rage incident has received £1.2mn in a compensation settlement with insurance company of the other driver. The 34 year old victim..

Multi-million payout #

01 May 2003

A mining company in the US has been hit by a jury decision to award US$163.7mn to the estate of an independent contractor who died following an accident at a mining operation owned by the..

Bride fails in holiday damages claim #

01 May 2003

A woman who sued a package holiday company after her husband drowned on their honeymoon, has lost her case for damages. The husband died after they both fell into a hole in the sandy lagoon,..

City analyst loses claim #

01 May 2003

An analyst for PricewaterhouseCoopers has lost her claim for sexual discrimination. The American woman alleged that she was made redundant after she complained about a male colleague who she said had tried to begin a..

Good news for disability insurer #

01 May 2003

However, in another case against UnumProvident, a California court has significantly reduced the terms of the original judgment. The court found that the insured was residually disabled and that the evidence was insufficient to find..

Bad news for disability insurers #

01 May 2003

MetLife and UnumProvident have been ordered to pay US$84.4mn in damages to a woman in Arizona who accused the companies of wrongly denying her disability claims. The jury award consists of punitive damages of US$79mn..

Prison officer’s trauma settlement #

01 May 2003

A prison officer who counselled sex offenders has been paid damages of £150,000 for psychological trauma. The officer suffered from post-traumatic stress disorder and depression and was unable to work. He claimed that he was..

Eddie Irvine wins damages appeal #

01 May 2003

The Court of Appeal has awarded Formula One racing driver Eddie Irvine damages of £25,000 after TalkSport radio doctored a photograph of the driver and used it in an advertising leaflet. A mobile phone in..

Attacker not told of disciplinary hearing #

01 May 2003

A convicted murderer, currently serving two life sentences, who attacked a fellow council worker with an axe has won a case for unfair dismissal. The man, who was employed as an environmental health inspector, was..

Transsexual in discrimination claim #

01 May 2003

A transsexual management consultant has taken her employer to a tribunal claiming compensation for unfair dismissal and discrimination. The transsexual alleges that she was made redundant because of her sex change. As a man, she..

Union backed litigation continues to grow #

01 May 2003

Given the focus on employers’ liability at the moment, with capacity problems, huge rate increases, uninsured businesses and a government review, employers and their insurers should take note of a new report from the TUC..

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