Insurance and reinsurance proper and business settlements and Thai floods
It has long been established that where a reinsurance contract requires the reinsurer to follow the settlements of the reinsured, the reinsurer will be bound subject to two provisos: ‘…  that the claim so recognised [by the reinsured] falls within the risks covered by the policy of reinsurance as a matter of law and  provided also that in settling the claim the insurers have acted honestly and have taken all proper and business-like steps in making the settlement.’ (see Insurance Company of Africa v SCOR [UK] Reinsurance Co Ltd  1 Lloyd’s Rep 312).
In his June 2014 judgment in Tokio Marine Europe Insurance Ltd v Novae Corporate Underwriting Ltd  EWHC 2105 (Comm), Mr Justice Field sitting in the Commercial Court had to consider the meaning of the phrase ‘proper and business-like’ in this context. The case arose out of losses suffered by Tesco as a result of the 2011 Thai floods.
Tesco had purchased property damage and business interruption cover with ACE in the form of a master policy with local policies issued in different jurisdictions around the world. The insurance provided cover on an ‘any one occurrence’ basis where an occurrence was broadly defined in the master policy as ‘any one occurrence or any series of cccurrences consequent or attributable to one source or original cause’. The master policy also contained an hours clause providing that all flood losses in a 72-hour period should be deemed to have been caused by a single occurrence…
Click on the link below to read the rest of the Ince & Co briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Ince & Co
News from The Lawyer
Briefings from Ince & Co
The recent judgment in the Longchamp case has overturned accepted industry thinking in how bunkers and crew wages are dealt with in a hijacking.
Much will no doubt be written about the main provisions of the new Counter Terrorism and Security Bill.