CENTRE REINSURANCE INTERNATIONAL CO v FREAKLEY

[2005] Lloyd's Rep IR 303

COURT OF APPEAL

Before Lord Justice Chadwick, Lord Justice Latham and Lady Justice Arden

Insurance (employers’ liability) - Asbestos claims - Insured becoming insolvent - Claims against liability insurers under Third Parties (Rights against Insurers) Act 1930 - Effect of policy deductible - Policy providing that control of claims to be transferred to insurer on insolvency of insured - Effect of transfer of rights in advance of statutory insolvency event - Whether claims clauses to be disregarded on basis that rights of third parties were altered - 1930 Act, section 1(3) - Whether insured entitled to be reimbursed in respect of claims-handling costs - Whether claims-handling costs forming a part of costs of administration - Insolvency Act 1986, section 19.