Liability insurance - After the event insurance

Callery v Gray (No 1), Callery v Gray (No 2), Sarwar v Alam

The virtual abolition of legal aid and its replacement with a regime of contingency fees and ‘after the event’ insurance has inevitably given rise to early problems. To date there are three relevant Court of Appeal decisions, all concerned with relatively small personal injury claims following on from road traffic accidents. The cases – Callery v Gray (No 1), Callery v Gray (No 2) (both reported in the November 2001 issue of Lloyd’s Rep IR) and Sarwar v Alam (to be reported in [2002] Lloyd’s Rep IR) – have laid down the guiding principles governing ATE insurance in small personal injury claims.