BEAZLEY UNDERWRITING LTD AND OTHERS V AL AHLEIA INSURANCE CO

[2013] EWHC 677 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Eder, 27 March 2013

Reinsurance - Claims cooperation clause - Interpretation - Whether reinsured had compromised or settled claim - Whether reinsurers had been given opportunity to control negotiations

KOC was insured under an open cover construction all risks liability policy by AIC and others. AIC reinsured with Beazley, AIG and others. KOC subsequently entered into a contract with HHI for the construction of five new crude oil storage tanks in Kuwait. The risk was declared to AIC and to the reinsurers. The declaration contained a claims control clause, compliance with which was a condition precedent to recovery under the reinsurance. It provided that: