Insurance Law Monthly

In Archer v R 'n' F Catering Ltd (t/a Biplob Restaurant) and Another [2025] EWHC 1342 (KB) HHJ Emma Kelly discussed preliminary issues based on assumed facts relating to the operation of the Third Parties (Rights Against Insurers) Act 2010 where the assured had, prior to becoming insolvent, failed to cooperate with the claims provisions in the policy. The court ruled that the 2010 Act was not as generous as might have been thought in disapplying claims conditions where a claim was made by a third party.

In Desai v Wood [2025] EWCA Civ 906 the Court of Appeal has affirmed the decision of HHJ Paul Matthews [2025] Lloyd's Rep IR 203, confirming a potentially serious weakness in the Third Parties (Rights Against Insurers) Act 2010, namely that there is no protection for the victim of an assured who has been paid the insurance monies before becoming insolvent.

In Watford Community Housing Trust v Arthur J Gallagher Insurance Brokers Ltd [2025] EWHC 743 (Comm); [2025] Lloyd's Rep IR 407 David Bailey KC considered the effect of policy "excess" clauses under which cover is deemed to be in excess of that offered by other policies. The court ruled, consistently with authority, that excess clauses are self-cancelling and that the assured is entitled to recover up to the sum insured from each insurer involved.