Obligatory and non-obligatory covers

Hanwha Non-Life Insurance Co Ltd v Alba Pte Ltd [2011] SGHC 271 is the first reported reinsurance decision in Singapore. The dispute raised a number of issues between the parties, the two most important being whether the reinsurers had the right to decline a declaration made to them under a reinsurance facility, and whether the terms of the underlying policy form had been incorporated into the reinsurance. The conclusions of Tan Lee Meng J are fully consistent with the analysis of the English courts on those matters.

Hanwha: the contractual arrangements

The claimant reinsured, a Korean company, was the successor in title to First Fire & Marine Insurance Co Ltd (FFM). On 27 March 2007 the original assured, Dae Hye Construction Co Ltd, became the successful bidder for the renovation of the Daewoo Kangnam Model House in Seoul. No formal written agreement between Dae Hye and Daewoo was signed at that time, and that did not occur until 7 September 2007, specifying a period of eight months running from 1 April 2007 to 30 November 2007.