New form of legal cover for region

Broker Lockton claims to have introduced the first After-the- Event Insurance cover in Singapore. The product will be underwritten by First Capital Insurance Limited which is owned by Odyssey Re. ATE Insurance is a form of legal expenses insurance which provides cover for the costs incurred in the pursuit or defence of litigation. The product allows those seeking legal redress to minimize the uncertainties and financial risk. The policy is purchased after a legal dispute has arisen. Tony Mitchell, President of Lockton Singapore, said that this type of insurance had been available in the UK for more than a decade and had enabled “tens of thousands of litigants to offset a considerable portion of their litigation costs.” Mr Mitchell, however, emphasised that ATE Insurance existed to provide access to justice for cases with genuine merit. He noted that the current economic and financial environment was likely to spawn many such cases. Typically, a policy will cover an insured’s liability for his opponent’s legal costs should the case fail. Types of cases that are typical for this insurance are: commercial litigation, professional negligence cases, insolvency cases and civil litigation cases. Usually the insured has a nominal premium to pay upfront and nothing further in the event that the case is unsuccessful. The insured is only liable to pay the full premium in the event that the case succeeds.