Reinsurance

Claims control clauses

The decision of Aikens J in Royal and Sun Alliance Insurance plc v Dornoch Ltd [2004] EWHC 803 (Comm) concerned the proper construction of a claims cooperation clause in the reinsurance of a liability cover. The Court’s somewhat surprising conclusion was that the obligation to notify the reinsurers of an underlying claim against the assured did not arise until after the claim had been substantiated.