I Introduction

Until May 2017, if an insurer paid a claim under an indemnity insurance policy unreasonably late to an assured, the assured had no remedy other than for statutory interest. This was because of the combination of two separate common law rules, namely the rule that a right to an indemnity under an indemnity insurance policy (and a marine policy is by definition an indemnity insurance policy)1 constitutes a right to unliquidated damages for breach of contract once the loss occurs, and the rule that no damages are recoverable for the late payment of damages. This state of affairs gave rise to considerable criticism over the years.