Insurance Law Monthly

The Road Traffic Act 1988 requires insurance to be in place for the use of a “motor vehicle” on a road or in a public place. The definition of “motor vehicle” in the Act is somewhat different from the definition in the EU Consolidated Motor Insurance Directive 2009.

The lengthy decision of Moulder J in Euro Pools plc v Royal and Sun Alliance Insurance plc [2018] EWHC 46 (Comm) discusses a series of important points arising under a liability policy. The initial issue was the much-debated question of whether a notification of circumstances under a claims made policy encompasses matters later coming to light, but there were also important questions relating to the recovery of mitigation costs and also costs incurred by the assured in pursuing a third party for indemnity or contribution.

In Sheehan v Lloyd’s Names Munich Re Syndicate Ltd [2017] FCA 1340 the assured under a marine policy suffered total loss of an engine after the oil pressure had dropped but the assured failed to respond to an alarm. The questions were whether the loss was accidental and, if so, whether it was excluded from insurance cover by reason of a defect in design.

In RSA Insurance plc v Assicurazioni Generali SpA, 15 May 2018, unreported, HHJ Rawlings discussed a matter that had not previously come before the English courts, namely, the operation of the Limitation Act 1980 in respect of a contribution claim by one insurer against another. The outcome was determined by analysis of the nature and legal basis of contribution.