Obligations under a settlement agreement

Once the assured has been indemnified, the insurers have subrogation rights against any third party liable to the assured for his loss. Subrogation operates automatically. On occasion, however, the settlement agreement between assured and insurers requires the assured himself to take proceedings against the third party and to hand over the proceeds. The obligations which may be imposed by such an agreement were explored by the Court of Appeal in Euler Hermes UK plc v Apple Computer BV [2006] EWCA Civ 375.