Reduced Limitation Period In Insurance Policy Enforceable

Keywords: reduced limitation period, insurance policy, accidental damage, business interruption

Summary

In the recent case of Possehl Electronics Hong Kong Limited v. China Taiping Insurance (HK) Co. Ltd, (CACV 9/2014), the plaintiff appealed against the judgment of the Court of First Instance dated 19 December 2013, striking out its claims on the grounds the claims were frivolous or vexatious and otherwise an abuse of process and dismissing the action. The Court of Appeal upheld the Court of First Instance's decision which found the 12 month time limitation clause imposed on the plaintiff to commence legal proceedings or arbitration following the occurrence of loss or damage to be enforceable.