In a number of cases, insurers have tried to avoid paying premiums. One such example, Bovis Construction Ltd/Commercial Union Assurance Co plc [2001] 1 Lloyd`s Rep 416 illustrated the complexity of these disputes. In that case, a dispute was reached as a result of a management contract entered into by Bovis and his client Rosehaugh in September 1988. Bovis was responsible for the construction of an apartment building and agreed to remain responsible for the defects for a period of 12 months after the completion of the project. During this period, a flood valued at $310,000 caused extensive damage from an opening of cables on the ground that had not been properly sealed during construction. Saga stated that the agreement meant that obtaining a contribution from other insurers should not affect premiums with these other insurers. A subrogated claim was made (most likely by Eagle Star) to recover all or at least part of the amount paid. On the merits, it was the assignment and the contribution, and it was found that an insurer that had compensated its policyholder could not claim assignment rights to another insurer that could be held liable for the same damage. The funds recovered must go through the principle of contribution. Mr. Justice David Steel also upheld the principle established in Legal – General/Drake Insurance [1992] 1 QB 887 that the appropriate contribution fee is not available if the insurer concerned is voluntary. Fisher Scoggins Waters is a London-based law firm with an expert in construction, manufacturing and engineering.
If you have questions about dual insurance or assessment on construction contracts or if you need legal advice in another area, call us on 0207 993 6960. The agreement in question is called a personal effects contribution agreement for claims over $150. Under this agreement, the travel insurer may charge premiums from other policies that may cover the damage suffered, since home content policies, credit cards and bank accounts often have some kind of travel insurance coverage as part of normal insurance coverage. Radio 4 Moneybox program on Saturday contains an article about a little-known agreement between insurers regarding travel insurance claims, meaning that a right to your travel insurance could affect your content extension premium. Saga did not want to be interviewed, but sent a statement saying: “It is customary for insurers to pay a fee to see if they can recover some of the costs of third-party insurers. Requesting a contribution from another insurer does not delay the payment of a claim. Approximately 1 of the 40 travel insurance claims have a third-party contribution of $800 on average. This is taken into account in the pricing of our travel insurance, which helps to reduce the price for all insured travellers. Complex construction projects, which have a number of policies at all times, can lead to dual insurance problems.
