Reinsurance

Disclosure and Claims Co-operation

(Gan Insurance Co Ltd v Tai Ping Insurance Co Ltd (No 2), June 2000 and reported in [2001] Lloyd’s Rep IR 291)

The decision of Mr Justice Longmore in Gan Insurance Co Ltd v Tai Ping Insurance Co Ltd (No 2), decided in June 2000 and reported in [2001] Lloyd’s Rep IR 291 , for the most part turns upon the complex facts before the court as to what was and what was not said on the presentation of a reinsurance risk. However, it contains some important comments on the significance of claims control clauses and their relationship to follow the settlements provisions. Earlier proceedings between the same parties, Gan Insurance Co Ltd v Tai Ping Insurance co Ltd [1999] Lloyd’s Rep IR 472 had been concerned with preliminary choice of forum and choice of law issues. The present hearing was itself required to resolve only preliminary issues. A further judgment on the issues between the parties – concerning the obligations under a claims co-operation clause – was given by Mr Justice Andrew Smith on 8 February 2001, but the transcript of his judgment is not yet available.