Insurance Law Monthly

The decision by an insurer to pay in respect of a constructive total loss without taking over the interest of the assured in a wreck requires careful consideration. In Dor noch Ltd v Westminster International BV [2009] EWHC 889 Admlty, Mr Justice Tomlinson rejected the proposition that an insurer will always have the protection of an equitable lien while it makes that decision. As a consequence the interest of those underwriters who had not elected to take over the wreck at the time of a sale by the insured was left unprotected. The case is discussed by Roger Stewart QC and Jonathan Hough of 4 New Square.

In Barr v Biffa Waste Services Ltd [2009] EWHC 1033 (TCC) the claimants obtained after-the-event (ATE) insurance to fund a Group Litigation action. The question for Coulson J was whether the defendant could obtain pre-action disclosure of the..

The complex negotiations leading to the placement of an insurance risk have ultimately to be embodied in a formal agreement between the parties, either in the form of a slip or a policy. On occasion it is the case that the final document does not reflect what the parties had intended. In such circumstances it is possible for one or other of the parties to apply to the court for the contract to be rectified so as to put the matter right. In Dunlop Heywards (DHL) Ltd v Erinaceous Insurance Services Ltd [2008] EWCA Civ 354 the question was whether the requirements for rectification had arguably been met. In holding that this was the case, the Court of Appeal – the leading judgment being given by Rix LJ – reversed the decision of Field J [2008] Lloyd’s Rep IR 676, discussed in the September 2008 issue of Insurance Law Monthly.

Aggregators have rapidly developed into one of the first ports of call for a person looking to purchase motor, household and other forms of insurance. In outline, an aggregator operates a website which allows the potential assured to insert various details and then to be presented with quotes from a number of insurers. The assured may then contact whichever of the insurers he wishes in order to make a formal application for cover. The question which arose in InsuranceWide.Com Services Ltd v HM Revenue & Customs [2009] EWHC 999 (Ch) was whether an aggregator is an insurance agent or an insurance broker for Value Added Tax purposes. The hearing before Sir Edward Evans-Lombe consisted of appeals from two VAT and Duties Tribunal decisions.