Acceptance of claim

Kosmar Villa Holidays Plc v Trustees of Syndicate 1243 CA TLR 11 March

E was seriously injured diving into a swimming pool during a holiday he had booked with the claimants. The claimants’ insurance policy with the defendant’s insurers contained a condition precedent which required the insured to give notice in writing, with full particulars, to the insurers immediately after the occurrence of any injury or damage. The claimants did not inform the insurers until a year after the injury had occurred when E notified them that he intended to bring proceedings. The insurers proceeded to deal with the claim, receiving reports on the accident from the claimants and asking for further information. They did not reserve any rights but after some two weeks, when they repudiated liability for the claim because of the failure to notify them promptly. The claimants contended the insurers’ initial communication with it demonstrated unequivocally the making of an informed choice to accept the claim. The trial judge accepted that argument.