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Insurance Disputes





Page 645

23.1 Employers’ liability is a special class of business because employers are compelled1 to have a policy of insurance to indemnify them against liability to employees. The normal rules for liability insurance apply to the construction of the policy and the handling of claims. There are however particular aspects of the interpretation of policies that are governed by the statute and statutory instruments that regulate this area of insurance. Many policies that cover the compulsory risks go further and offer cover that is not necessary. This chapter is particularly concerned with the compulsory insurance provisions but will deal generally with those clauses often found in this type of policy. The principal statutory provision is the Employers’ Liability (Compulsory Insurance) Act 1969 (“the Act”). The principal regulations under the 1969 Act are the Employers’ Liability (Compulsory Insurance) General Regulations 1998 (“General Regulations”).2

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