Only underwriting fee recoverable

Under a cost order, the whole premium paid for litigation protection insurance policies, where it included amounts other than the underwriting fee, could not be recovered. The amounts charged by the underwriters for the risk (an indemnity where a personal injury compensation claim was dismissed or halted) was the premium that could be recovered and not the whole premium charged, which included sums for advertising and promotion costs. This was a test case, after a number of liability insurers challenged cases brought by successful claimants looking to recover the whole premium charged, and not just the fee charged by the underwriters.