Insurance Law Monthly

England has set its face against the disclosure of insurance arrangements in litigation. Re RBS Rights Issue Litigation [2017] EWHC 463 (Ch), a decision of Hildyard J, involved a rejection by the court of an application for disclosure of the insurance arrangements of those funding claimants in a group action, the purpose of the application being to allow the defendants to decide whether or not to apply for security for costs.

In New Zealand it is common for property policies to contain reinstatement clauses, whereby if a claim is paid by the insurers then the amount of cover is automatically reinstated subject to the payment of an additional premium if required. In Annex Developments Ltd v IAG New Zealand Ltd [2017] NZHC 706, Associate Judge Matthews was required to decide whether reinstatement was triggered by actual payment only, or whether sums that should have been paid but were not paid themselves triggered reinstatement so that the full amount of policy cover remained in place for any future losses.

Some policies require the assured to comply with statutory or regulatory standards. A recurring question is whether such an obligation is absolute or whether it is subject to reasonable care restrictions. The most recent decision, Manitowoq Platinum Pty Ltd v WFI Insurance Ltd [2017] WADC 32, a decision of Davis DCJ in the Western Australia District Court, has shown a clear preference for a reasonable care interpretation. Earlier cases demanding absolute compliance were distinguished.

The EU’s Insurance Distribution Directive, European Parliament and Council Directive 2016/97/EU is primarily concerned with the regulation of brokers and other intermediaries, but it does contain other provisions relevant to distribution. Article 20 makes provision for disclosure of product information where advice has not been sought by the customer. Article 20(8) lists the matters that are to be contained in a product information document, relating most importantly to the main insured and excluded risks and the obligations of the parties.

The Consolidated Motor Insurance Directive, European Parliament and Council Directive 2009/103/EC requires a policy to cover injuries or damage inflicted by the driver of a stolen vehicle. It also requires insurance for any passenger, including the owner of the vehicle, when it is being driven by a third party.