Reinsurance - Claims co-operation and follow the settlements

(Gan Insurance Co Ltd v Tai Ping Insurance Co Ltd (No 3) [2002] EWCA Civ 248)

The long-running reinsurance dispute resulting from the fire which severely damaged Winbond’s computer chip factory in Taiwan in October 1996 has now reached the English courts on no less than six occasions. There has yet to be a trial on many of the substantive issues. The most recent skirmish, Gan Insurance Co Ltd v Tai Ping Insurance Co Ltd (No 3) [2002] EWCA Civ 248 (forthcoming in [2002] Lloyd’s Rep IR) has shed some light on the scope and operation of claims cooperation and follow settlements provisions.