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AIG EUROPE (IRELAND) LTD v FARADAY CAPITAL LTD

[2007] Lloyd's Rep IR Plus 1

Reinsurance – Claims cooperation clause – Reinsured required to notify losses within 30 days or as soon as reasonably practicable – Claims made against assured by third parties – Settlement reached between assured – Date of loss – Whether reinsured in breach of clause.

TRAVELERS CASUALTY AND SURETY CO OF CANADA v SUN LIFE ASSURANCE CO OF CANADA (UK) LTD

[2007] Lloyd's Rep IR Plus 2

Insurance (liability) – Global excess policy issued to Canadian parent company and worldwide subsidiaries – English subsidiary incurring losses following review of sale of investment contracts ordered by Financial Services Authority – Whether English or Ontario law applied to policy – Whether assured in breach of warranty as to knowledge of circumstances which could give rise to liability – Whether assured in breach of obligation to notify claims as soon as practicable – Quantum.

PLYMOUTH & SOUTH WEST CO-OPERATIVE SOCIETY LTD v ARCHITECTURE, STRUCTURE & MANAGEMENT LTD

[2007] Lloyd's Rep IR Plus 3

Insurance (professional indemnity) – Judgment obtained against insolvent assured – Sum awarded plus estimated costs in excess of policy limits – Whether costs order could be made directly against liability insurers – Supreme Court Act 1981, section 51.

RE BALLAST ST PAUL TRAVELERS INSURANCE CO LTD v DARGAN

[2007] Lloyd's Rep IR Plus 4

Insurance – Subrogation – Insurers indemnifying assured and seeking to exercise subrogation rights against third party – Assured becoming insolvent and going into liquidation – Liquidators wishing to disclaim contract with third party giving rise to subrogation rights – Whether insurers having equitable right over cause of action – Insolvency Act 1986, sections 178 and 181.

HORBURY BUILDING SYSTEMS LTD v HAMPDEN INSURANCE NV

[2007] Lloyd's Rep IR Plus 5

Insurance (products liability) – Assured installed ceilings in cinema complex – One ceiling collapsed resulting in closure of entire complex – Whether insurers required to indemnify assured against liability to third parties for losses arising from closure of cinema – Whether appropriate to grant declaration in advance of claim against assured.

BOLTON METROPOLITAN BOROUGH COUNCIL v MUNICIPAL MUTUAL INSURANCE LTD

[2007] Lloyd's Rep IR Plus 6

Insurance (public liability) – Victim exposed to asbestos and contracting illness some years later – Different public liability policies in force at each date – Whether claim by victim covered by earlier or later policy – Whether development of disease following exposure “accidental” – Whether condition precedent requiring immediate notification of loss waived by denial of coverage – Whether right of contribution existed.

MARINA OFFSHORE PTE LTD v CHINA INSURANCE CO (SINGAPORE) PTE LTD

[2007] Lloyd's Rep IR Plus 7

Insurance (marine) – Whether loss caused by perils of the sea – Whether policy mixed time and voyage or just time – Whether vessel unseaworthy – Whether vessel sent to sea in unseaworthy condition with privity of assured – Marine Insurance Act 1906, sections 25 and 39.

GOSHAWK DEDICATED LTD AND OTHERS v TYSER & CO LTD AND ANOTHER

[2007] Lloyd's Rep IR Plus 8

Insurance brokers – Placing, claims and accounting documents in possession of brokers – Whether underwriters legal or equitable owners of documents – Whether implied obligation on assureds to disclose documents to underwriters – Whether implied contract between brokers and undewriters that brokers would provide documents on behalf of assureds – Effect of Terms of Business Agreements 2001

MARKEL INTERNATIONAL CO LTD v CRAFT (THE “NORSEMAN”)

[2007] Lloyd's Rep IR Plus 9

Insurance (liability) – Conflict of laws – Anti-suit injunction – Direct action brought against liability insurers in Tunisia – Insurance policy containing arbitration clause – Insurers arguing that Tunisian law allowed direct action free of arbitration clause – Whether injunction should be granted.

KR v ROYAL & SUN ALLIANCE PLC

[2007] Lloyd's Rep IR Plus 10

Insurance (liability) – Policy taken out by company operating care home – Policy excluding liability of insurers for deliberate acts and omissions – Controller of company committing deliberate acts of abuse against children – Claimants obtaining judgment against company – Company becoming insolvent – Whether claimants entitled to enforce judgment against insurers – Third Parties (Rights against Insurers) Act 1930.

PHILLIPS v (1) RAFIQ (2) MOTOR INSURERS’ BUREAU

[2007] Lloyd's Rep IR Plus 11

Insurance (motor) – Registered owner of vehicle uninsured for use of vehicle – Owner killed while passenger in vehicle being driven by uninsured driver – Claim against driver under Fatal Accidents Act 1976 – Whether Motor Insurers’ Bureau liable to satisfy judgment – Uninsured Drivers Agreement 1999, clause 6.

KONKOLA COPPER MINES PLC AND OTHERS v COROMIN LTD AND OTHERS

[2007] Lloyd's Rep IR Plus 12

Reinsurance – Conflict of laws – Jurisidction – Whether reinsurance incorporated exclusive jurisdiction clause nominating Zambia – Whether English court should hear action despite clause – Burden of proving existence of clause – Standard of proof.

ENTERPRISE OIL LTD v STRAND INSURANCE CO LTD

[2007] Lloyd's Rep IR Plus 13

Insurance (liability) – Settlement reached by assured in respect of proceedings in Texas – Claim against liability insurers – Whether insurers’ liability based on proof of assured’s actual liability or proof that Texas could reasonably have reached a finding of liability – Whether assured faced liability in tort under Texas law – Whether coverage of policy for contractual liability extended to settlements – Whether settlement had to allocate losses as between the various claims made against the assured – Whether assured could recover defence costs.

This Lloyd’s Law Reports Insurance and Reinsurance Plus judgment has now been reported at [2007] Lloyd’s Rep IR 186. Please click here to view the judgment.

ENGLISH AND AMERICAN INSURANCE CO LTD v AXA RE SA

[2007] Lloyd's Rep IR Plus 14

Reinsurance – Reinsured entering into agreement with assured to pay proportion of claims – Agreement based on terms of market agreement not involving the reinsured – Without prejudice privilege – Whether offers by reinsurers to settle were admissible in evidence – Whether settlement reached by reinsured – Whether reinsurers bound to follow settlement under follow the settlements clause.

DORNOCH LTD v MAURITIUS UNION ASSURANCE CO LTD (NO 2)

[2007] Lloyd's Rep IR Plus 15

Reinsurance – Excess of loss reinsurance cover for property losses – Employee systematically defrauded assured bank by removing money from accounts – Whether losses amounting to property losses – Whether losses could be aggregated so as to exceed deductible – Whether 72-hour clause prevented recovery of losses discovered more than 72 hours after occurrence

BRIT SYNDICATES LTD v GRANT THORNTON INTERNATIONAL

[2007] Lloyd's Rep IR Plus 16

Insurance (professional indemnity) – Policy taken out by firm covering itself and all member firms – Policy insuring parent against claims made against a member firm insured under the policy – Member firm’s cover avoided for breach of duty of good faith – Whether firm itself still entitled to protection.

BEE v JENSON

[2007] Lloyd's Rep IR Plus 17

Insurance (motor) – Claimant’s policy covering costs of hiring replacement car – Whether defendant liable to indemnify claimant for hire charges.

BARTOLINE LTD v ROYAL & SUN ALLIANCE INSURANCE PLC

[2007] Lloyd's Rep IR Plus 18

Insurance (liability) – Assured causing pollution to land and watercourses – Assured incurring clean-up costs and other expenses on the instructions of the Environment Agency – Liability policy covering assured’s liability against legal liability for damages – Whether liability to Environment Agency constituted damages – Water Resources Act 1991, sections 161 and 161A.

MOORE v (1) SECRETARY OF STATE FOR TRANSPORT (2) MOTOR INSURERS’ BUREAU

[2007] Lloyd's Rep IR Plus 19

Insurance (motor) – Hit and run driver – Victim claiming from Motor Insurers Bureau under Untraced Drivers Agreement 1972 – Claim by victim against UK Government for failing to implement Second EC Motor Directive 84/5/EEC – Whether action time-barred – Limitation Act 1980.

STAATSSECRETARIS VAN FINANCIEN v ARTHUR ANDERSEN & CO

[2007] Lloyd's Rep IR Plus 20

Insurance – Value added tax – Life insurer contracted out “back office” functions to consultancy – Whether VAT payable on services provided by consultancy – Whether consultancy an employee of insurer – Whether consultancy party to insurance and reinsurance transactions – Whether carrying on services provided by broker or agent – Sixth Council VAT Directive 77/388/EEC, articles 4 and 13B.

KYLE BAY LTD v UNDERWRITERS SUBSCRIBING TO POLICY NO 019057/08/01

[2007] Lloyd's Rep IR Plus 21

Insurance (business interruption) – Claim compromised under final settlement on basis of gross profits cover subject to average – Policy found to provide indemnity on declaration-linked basis not subject to average – Whether settlement void for mistake or voidable for misrepresentation.

FARRELL v (1) WHITTY (2) MOTOR INSURERS’ BUREAU OF IRELAND

[2007] Lloyd's Rep IR Plus 22

Insurance (motor) – Passenger injured in vehicle not equipped for carrying passengers – Driver uninsured – Claim against Irish Motor Insurers’ Bureau – Whether compulsory insurance scheme extended to persons being carried in all vehicles – Council Directive 84/9/EEC, article 5 – Whether Uninsured Drivers Agreement subject to Directive.

MERRILL LYNCH INTERNATIONAL BANK LTD v WINTERTHUR SWISS INSURANCE CO

[2007] Lloyd's Rep IR Plus 23

Insurance (credit indemnity) – Policy taken out to cover bankruptcy and default risks – Whether events falling within terms of cover – Whether due notice given to insurers – Whether sum payable by insurers was to be reduced by actual payment later made by debtor – Date of running of interest – Supreme Court Act 1981, section 35A.

C A BLACKWELL (CONTRACTS) LTD v GERLING GENERAL INSURANCE CO

[2007] Lloyd's Rep IR Plus 24

Insurance (construction) – Road damaged by bad weather – Whether assured had “all risks” policy – Whether loss fortuitous even though bad weather was foreseeable – Whether assured guilty of wilful misconduct – Whether property subject to defects within meaning of exclusion.

566935 BC LTD v ALLIANZ INSURANCE CO OF CANADA

[2007] Lloyd's Rep IR Plus 25

Insurance (marine) – Barge sunk at its moorings due to ingress of water – Insurance against perils of the sea – Hull of barge rotten – Water ingress controlled by pump – Whether loss of vessel was fortuitous – Whether power supply to pump had been interrupted.

EQUITAS LTD v HORACE HOLMAN & CO LTD

[2007] Lloyd's Rep IR Plus 26

Insurance (brokers) – Duty of brokers to maintain proper and adequate records of reinsurance recoveries – Whether records adequate – Whether sums paid by reinsurers not passed on by brokers – Costs of the proceedings – CPR Part 44.3.

ARBORY GROUP LTD v WEST CRAVEN INSURANCE SERVICES

[2007] Lloyd's Rep IR Plus 27

Insurance (business interruption) – Failure by broker to obtain cover for full amount of loss – Measure of damages against broker – Whether insurers had separate insurable interest defence against assured – Whether broker liable for loss of profits in addition to loss of policy monies – Whether assured guilty of contributory negligence.

BRAIN v YORKSHIRE RIDER LTD

[2007] Lloyd's Rep IR Plus 28

Insurance (motor) – Claimant’s vehicle damaged in motor accident – Claimant incurred costs in hiring replacement vehicle – Whether claimant acted reasonably in hiring expensive vehicle – Mitigation of loss.

ANDERS & KERN UK LTD v CGU INSURANCE PLC

[2007] Lloyd's Rep IR Plus 29

Insurance (property) – Policy clause requiring assured to maintain intruder alarm when premises were unoccupied unless there was violence or a threat of violence – Whether disabling intruder alarm amounted to threat of violence – Whether clause subject to reasonableness requirement – Whether clause incorporated into policy.

NOBLEBRIGHT LTD v SIRIUS INTERNATIONAL CORPORATION LLOYD’S SYNDICATE 1200

[2007] Lloyd's Rep IR Plus 30

Insurance (property) – Proposal form asking assured to disclose facts relating to earlier claims – Assured not disclosing armed robberies in respect of which no claim was made – Whether information waived by express questions.

EVANS v TNT LOGISTICS LTD ADMIRAL INSURANCE SERVICES LTD

[2007] Lloyd's Rep IR Plus 31

Insurance (motor) – Claim for damages for cost of hiring replacement car – Defendant offering claimant replacement vehicle free of charge to claimant – Claimant hiring his own replacement car – Whether claimant failed to mitigate loss – Measure of damages – Whether cost to defendant of supplying replacement car to be disregarded.

BEE v JENSON (NO 2)

[2007] Lloyd's Rep IR Plus 32

Insurance (motor) – Subrogation – Assured’s vehicle damaged by third party – Assured’s insurers paying for cost of hiring replacement vehicle – Insurers seeking to recover sum paid from third party – Whether amount recoverable to be reduced by benefits received by insurers.

NOBLE ASSURANCE CO v GERLING-KONZERN GENERAL INSURANCE CO

[2007] Lloyd's Rep IR Plus 33

Reinsurance – Arbitration – Insurance policy covering assured and subsidiaries – Loss suffered by subsidiary– Assured issuing insurance certificate policy after loss – Dispute as to coverage referred to arbitration – Arbitrators ruling that subsidiary covered under terms of policy and under terms of certificate policy – Reinsurers bringing action in Vermont based on validity of certificate policy – Whether reinsurers estopped from raising issue – Whether anti-suit injunction or declaration should be granted.

WASA INTERNATIONAL INSURANCE CO LTD v LEXINGTON INSURANCE CO AGF INSURANCE LTD v LEXINGTON INSURANCE CO

[2007] Lloyd's Rep IR Plus 34

Reinsurance – Reinsured providing property cover for three-year period to assured – Proportional reinsurance written as original and follow the settlements, but covering property damage occurring during currency of the reinsurance – US court holding reinsured liable for property damage dating back 50 years before inception of cover – Reinsured settling – Whether reinsurers bound by settlement – Whether deductible clause in reinsurance applied per occurrence – Whether reinsurers liable for defence costs.

HIH CASUALTY AND GENERAL INSURANCE LTD v JLT RISK SOLUTIONS LTD

[2007] Lloyd's Rep IR Plus 35

Insurance and reinsurance brokers – Brokers placing both direct risk and reinsurance – Brokers becoming aware of breaches of warranty in insurance and reinsurance – Brokers not specifically drawing information to reinsured’s attention – Whether brokers owed duty of care to keep reinsured informed – Whether duty broken – Causation and contributory negligence.

FISK v BRIAN THORNHILL & SON

[2007] Lloyd's Rep IR Plus 36

Insurance (property) – Producing broker sending false information on construction of building to placing broker – Risk placed – Placing broker renewing cover with new insurers without informing assured or producing broker of new insurers or new terms – Flood – Insurers avoiding liability – Producing broker settling with assured – Whether placing broker liable in damages or to contribute to placing broker – Causation.

THE BOARD OF TRUSTEES OF THE TATE GALLERY v DUFFY CONSTRUCTION LTD

[2007] Lloyd's Rep IR Plus 37

Insurance (construction) – Policy insuring employer and contractor against loss caused by flood and burst pipes – Tate Gallery flooded when pipe became detached from main – Whether flood or burst pipe – Effect of failure by contractor to take reasonable care, in breach of policy terms – Whether insurers entitled to exercise subrogation rights against contractor.

AEGIS ELECTRICAL AND GAS INTERNATIONAL SERVICES LTD v CONTINENTAL CASUALTY CO

[2007] Lloyd's Rep IR Plus 38

Reinsurance – Full reinsurance clause – Definition of risk in reinsurance – Whether definition overriding incorporation of direct policy wording – Follow the settlements – Whether clause unconditional – Whether reinsurers bound to accept settlement by reinsured as conclusive of coverage under reinsurance – Meaning of “explosion”.

TAPPOO HOLDINGS LTD v STUCHBERY

[2007] Lloyd's Rep IR Plus 39

Insurance (material damage) – Fijian Parliament seized and Government members taken hostage – Law and order breaking down – Assured’s premises damaged by rioters and looters in Suva – All risks policy excluding liability for loss directly or indirectly caused by insurrection – Whether events amounted to insurrection – Causation – Effect of Insurance Law Reform Act 1996, section 25 (Fiji).

KOSMAR VILLA HOLIDAYS PLC v TRUSTEES OF SYNDICATE 1243

[2007] Lloyd's Rep IR Plus 40

Insurance (liability) – Policy containing condition precedent requiring immediate notification of occurrence of injury or damage – Notice of injury not given for over a year after occurrence – Whether insurers had waived breach by reason of pre-contractual or post-loss conduct – Whether waiver by election of condition precedent possible – Whether insurers estopped from denying liability.

BYRNE v MOTOR INSURERS BUREAU AND ANOTHER

[2007] Lloyd's Rep IR Plus 41

Insurance (motor) – Motor Insurers Bureau Untraced Drivers Agreement – Victim injured aged three – MIB Agreement containing three-year time bar – Action not brought for thirteen years – Whether three-year time bar consistent with Second Motor Insurance Directive – Whether Agreement to be construed to comply with Directive – Whether Directive enforceable against MIB – Whether UK Government liable in damages – Council Directive 84/5/EC

THE BOARD OF TRUSTEES OF THE TATE GALLERY v DUFFY CONSTRUCTION LTD (NO 2)

[2007] Lloyd's Rep IR Plus 42

Insurance (property) – Subrogation – Co-insurance – Owners and contractors co-insured under policy providing cover against flood – Works flooded due to alleged negligence of contractors – Policy containing reasonable care clause – Whether contractors in breach of reasonable care clause – Whether insurers entitled to exercise subrogation rights.

ENCIA REMEDIATIONS LTD v CANOPIUS MANAGING AGENTS LTD

[2007] Lloyd's Rep IR Plus 43

Insurance (professional indemnity) – Policy covering professional indemnity risks but excluding supply and construction risks – Assured entering into design and build contract – Whether policy covered professional liability arising under that contract – Principles of construction.

PHILLIPS & CO v WHATLEY

[2007] Lloyd's Rep IR Plus 44

Insurance (employers’ liability) – Employee injured in accident at work – Employee’s lawyers failed to bring action against the employers within the limitation period – Measure of damages against lawyers – Prospects of employee recovering damages from employers – Prospects of employers successfully recovering from their liability insurers.

AXA INSURANCE UK PLC v NORWICH UNION INSURANCE LTD

[2007] Lloyd's Rep IR Plus 45

Insurance (motor) – Employee injured while working on elevated platform on vehicle belonging to employer – Employer insured against third party motor liability and against employers’ liability – Whether risk covered by motor or employers’ policy – Road Traffic Act 1988, section 145 – Employers’ Liability (Compulsory Insurance) Act 1969 – EC Third Motor Insurance Directive, Council Directive 90/232/EEC.

UNITED INSURANCE CO OF LIBYA v AON LTD

[2007] Lloyd's Rep IR Plus 46

Reinsurance (broker) – Reinsurance of fronting company – Whether broker misstated to fronting company the level of commission to be earned on placing reinsurance – Whether broker contractually bound to fronting company not to tender for business using another fronting company.

KOREA NATIONAL INSURANCE CORPORATION v ALLIANZ GLOBAL CORPORATE & SPECIALITY AG

[2007] Lloyd's Rep IR Plus 47

Reinsurance – Summary judgment – Whether judgment against reinsurers in Korea binding – Whether reinsurers had entered into settlement agreement with reinsured.

SEELE AUSTRIA GMBH & CO v TOKIO MARINE EUROPE INSURANCE LTD

[2007] Lloyd's Rep IR Plus 48

Insurance – Product liability – Insurance against damage caused by defects in property – Exclusion for damage deliberately inflicted to remedy a defect – Windows defective and leaked – Whether property damaged – Whether cost of removing cladding to repair windows recoverable under policy.

HLB KIDSONS v LLOYD’S UNDERWRITERS SUBSCRIBING TO POLICY 621/PKID00101 & OTHERS

[2007] Lloyd's Rep IR Plus 49

Insurance (professional indemnity) – Policies requiring assured to give notice in writing as soon as practicable of any circumstances of which it became aware – Claims made against assured outside policy period – Whether assured became aware of circumstances – Whether valid notification given to insurers – Whether clause constituted a condition precedent to the insurers’ liability.

COLONIAL FIRE AND GENERAL INSURANCE CO LTD v HARRY

[2007] Lloyd's Rep IR Plus 50

Insurance (motor) – Trinidad and Tobago – Claimant bringing personal injury action against owner, driver and insurers of motor vehicle – Insurers commencing action to avoid policy – Whether claimant given notice of insurers’ action – Whether insurers required to join driver to action – Motor Vehicles Insurance (Third Party Risks) Act.

GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND v EUCLIDIAN (NO 1) LTD

[2007] Lloyd's Rep IR Plus 51

Insurance (after the event) – Bank lending money to claimants to fund premium for ATE insurance – Binding authority issued by underwriters to operator of scheme for issue of certificates of insurance to claimants – Policies assigned to bank – Whether bank entitled to recover from ATE insurers where underwriters not liable to indemnify claimants – Whether clause a “security” – Whether cancellation of loan agreements “affected” the insurance – Consumer Credit Act 1974, section 113.

POOLE v HM TREASURY

[2007] Lloyd's Rep IR Plus 52

Insurance – Lloyd’s – Action by Lloyd’s Names against Treasury for failing to implement EC Insurance Directives – Whether Directives conferring individual rights – Council Directive 73/239/EEC.

BUNNEY v BURNS ANDERSON PLC AND ANOTHER CAHILL v TIMOTHY JAMES & PARTNERS LTD

[2007] Lloyd's Rep IR Plus 53

Financial Ombudsman Service – Order by FOS that defendant pay £228,055 to the applicant for loss caused by unsuitable advice – Whether court had jurisdiction to hear a challenge to the award other than by judicial review – Whether FOS had jurisdiction to award more than £100,000 – Financial Services and Markets Act 2000.

OUTOKUMPU STAINLESS LTD v AXA GLOBAL RISKS (UK) LTD AND OTHERS

[2007] Lloyd's Rep IR Plus 54

Insurance (property) – Steelworks insured against loss of or damage to property – Exclusion for loss arising from radiation – Radioactive Contamination cover extending cover to damage due to contamination – Assured incurring additional costs in disposing of contaminated slag – Whether costs covered by Radioactive Contamination clause

HARCOURT v F E F GRIFFIN

[2007] Lloyd's Rep IR Plus 55

Insurance (liability) – Procedure – Claimant injured on defendant’s premises – Claimant obtaining consent order on liability and pursuing claim on quantum – Application by claimant for disclosure of defendant’s liability insurance details – Whether order should be made – Civil Procedure Rules, Part 18.

EUROP ASSISTANCE INSURANCE LTD v TEMPLE LEGAL PROTECTION LTD

[2007] Lloyd's Rep IR Plus 56

Insurance (after the event) – Agency – Defendant authorised to conduct run-off on behalf of claimant – Claimant terminating agency alleging breach of contract and breach of duty – Whether claimant entitled to temporary injunction restraining defendant from conducting run-off.

BEE v JENSON (NO 2)

[2007] Lloyd's Rep IR Plus 57

Insurance (motor) – Subrogation – Assured’s vehicle damaged by third party – Assured’s insurers paying for cost of hiring replacement vehicle – Insurers seeking to recover sum paid from third party – Whether amount recoverable to be reduced by benefits received by insurers.

LLR: Insurance & Reinsurance Plus