Weekly Update - A Summary Of Recent Developments In Insurance, Reinsurance And Litigation Law - 27/11

THIS WEEK'S CASELAW

Swindon & Ors v Quinn Insurance Ltd

Whether claim by insured was time-barred/when did the "claim" arise

http://www.bailii.org/ew/cases/EWCA/Civ/2011/825.html

A third party alleged that the insured had negligently caused a fire which damaged its property. The insured denied liability but notified its public liability insurer. After the third party had written a letter of claim to the insured, the insurer denied liability (on the ground that the insured had breached a policy condition). In due course, a default judgment was entered against the insured and damages were later assessed by the court.

General Condition 16 of the public liability policy provided as follows: "Any dispute between the Insured and the [Insurer] on our liability in respect of a claim...shall be referred within nine months of the dispute arising to an arbitrator...If the dispute has not been referred to arbitration within the aforesaid nine month period, then the claim