HLB Kidsons v Lloyd´s Underwriters & Others

Getting Claims Notification Right – Fair, Comprehensive & Comprehensible

The Court of Appeal recently ruled on Gloster J.'s detailed analysis of the claims notification provisions in a claims made PII policy. At first instance, Gloster J. held that the information provided to underwriters was insufficient to trigger the "deeming" provision of the firm's PII policy save to the extent of a limited category of claims. This provision deemed that claims made after policy expiry were covered if they arose out of circumstances which had been validly notified within the policy period. Gloster J.'s test for a valid notification, that it was, "sufficiently clear and unambiguous to leave a reasonable recipient in no reasonable doubt", was rejected on appeal as being of no great assistance. The Court of Appeal instead held that any notification should be "fair, comprehensive and comprehensible". Where does this leave both insureds and insurers going forward? What constitutes