Aggregation clauses play a vital role in all forms of insurance,
although they have been discussed most commonly in the context of
liability insurance. Aggregation fixes the amount recoverable by
the assured where the assured's liability arises out of a
number of separate acts of negligence. The policy may fix the
maximum sum recoverable on a "per claim" basis, or it may
require the assured by way of deductible to bear the first part of
the amount of any claim.
Where there is a large number of small claims that cannot be
aggregated, and none of the claims exceeds the deductible, the
assured will recover nothing. By contrast, where there is a small
number of large claims that cannot be aggregated, the assured will
recover the sum insured in respect of each claim.
