Insurance Law Monthly

It is common for a company to obtain for its directors professional indemnity insurance and also directors and officers (D&O) insurance. The two policies cover different liabilities. The former is concerned with professional activities whereas the latter is concerned with claims arising solely by reason of the role of officeholder. Typically, each policy will exclude claims covered by the other.

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.

In Xu and Another v IAG New Zealand Ltd and Another [2017] NZHC 1964 Nation J in the New Zealand High Court considered the effect of the much-discussed decision in Bryant v Primary Industries Insurance Co Ltd [1990] 2 NZLR 142. Nation J has confirmed that the benefits of a policy providing for payment of reinstatement costs cannot be assigned to a third party, because the obligation to reinstate is personal to the assured.

In Ted Baker plc v AXA Insurance UK plc [2017] EWCA Civ 4097 the Court of Appeal was faced with an appeal against the decision of Eder J ([2015] Lloyd’s Rep IR 325), dismissing a business interruption claim by TB on the grounds that TB had not proved its loss, and that TB had been in breach of claims conditions and the breaches had not been waived.

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.

Sadat and Another v Tower Insurance Ltd and Another [2017] NZHC 1550 is the latest in a long line of earthquake claims, shedding light on the measure of indemnity in property insurance cases. Sadat is particularly important on proof of loss and damages for late payment.