Reinsurance: loss settlement clauses in treaties

In New Zealand Local Government Insurance Corporation Ltd v R+V Versicherung AG [2013] NZHC 690 Mackenzie J in the New Zealand High Court has considered the meaning of a “loss settlements” clause in an excess of loss reinsurance treaty, and in particular the steps to be taken by the reinsured to establish a claim under the treaty.

The case also considers the limits of indemnity under the treaty, although the court ultimately concluded that the matter was not one that could be resolved by summary judgment.