Costs: Oldham V QBE Insurance

Insurers entitled to reimbursement of defence costs where claim not covered

The claimant notified his professional indemnity insurers of a claim against him. The insurer was obliged under clause C10.2 of the ICAEW's Minimum Terms to advance defence costs in relation to that claim "in the event of any dispute concerning liability to indemnify the insured...pending resolution of any such dispute". The insurer separately disputed cover under the policy and referred the matter to arbitration. The arbitrator held that there was no cover under the policy and the claimant was ordered to pay the arbitration costs. The claimant was given a number of extensions to respond but before expiry of the last deadline, the arbitrator found that the insurer was entitled to reimbursement of the defence costs and the claimant was ordered to make a payment on account of costs within 28 days of the award. The claimant appealed/challenged the award under sections 69 and 68 of the