Knowledge And Claims Co-Operation Clauses

Claims Co-operation Clauses ("CCC") aim to provide reinsurers with a greater degree of control in order to manage risks. These clauses can typically require that when the reinsured is in possession of information relating to circumstances that may give rise to a claim, it should notify the reinsurer of this. It is common practice for the CCC to be made a condition precedent to liability, rendering failure to comply within a stated period fatal to a resulting claim.

In Markel Capital Ltd v Gothaer Allgemeine Versicherung AG, Continantale Sachversicherung AG and Bolemers & Partners Ltd [2008] the operation of a CCC in a facultative excess of loss reinsurance contract was considered. The central issue was whether or not knowledge of a relevant circumstance which was held by the general agent for an insurance pool ("VOV") could be imputed to its principals the reinsured and thus trigger the obligation to notify under the CCC.