Insurance Law Monthly

The question in Peabody Trust v National House-Building Council [2024] EWHC 2063 (TCC); [2024] Lloyd's Rep IR Plus 36 was whether the six-year limitation period for insurance claims laid down by the Limitation Act 1980 began to run under an insolvency policy taken out by a developer when the contractor became insolvent or when the contractor's insolvency gave rise to financial loss. Andrew Mitchell KC, sitting as a Deputy Judge of the High Court, opted for the latter.

It is a basic principle of insurance law that the assured is entitled to an indemnity. If sums are received from a third-party source that go to reduce the insured loss, then the insurer is entitled to deduct those sums in order to hold the assured to an indemnity. The same principle applies if the third-party sums are received after the insurers have paid: the insurers are entitled to the benefit of those sums but not beyond the point which deprives the assured of an indemnity.

In Sayers Property Holdings Pty Ltd and Another v AIG Australia Ltd [2024] VSC 139 Garde J in the Victoria Supreme Court considered whether a sum agreed to be paid by the assured by way of settlement related to a claim against the assured or whether it was a wider commercial arrangement.

It was inevitable that the massive Covid-19 liabilities faced by business interruption insurers would give rise to disputes with reinsurers. In UnipolSai Assicurazioni SpA v Covéa Insurance plc; Markel International Insurance Co Ltd v General Reinsurance AG [2024] EWHC 253 (Comm) there were appeals under section 69 of the Arbitration Act 1996 against two arbitration awards on the meaning of excess of loss treaties providing cover for catastrophes.