Image
Icon

Directory

IconAppraisers and Valuers
IconAssociations and Institutes
IconBBBEE Consulting and Verification Agencies
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDefensive Driver Training
IconEmergency Medical Rescue
IconInsurance Brokers - Alphabetical Listing
IconInsurance Brokers by Type of Product or Service Needed
IconInsurance Companies
IconInsurance Consultants
IconLightning Damage & Surge Protection Specialists
IconOmbud
IconOnline Quotes and Cover
IconPremium Financing
IconPublic Loss Adjustors
IconPublications
IconRating Agencies
IconRegulatory Authorities
IconRisk Finance
IconRisk Management
IconRisk Surveyors
IconSalvage Operators
IconTelephone Quotes
IconVehicle Accident Management
IconVehicle and Household Risk Inspection Services
IconVehicle Tracking
IconWellness Programs
Image
  Subscribe To »

Claims made liability policies and claims notification

Published

2017

Fri

17

Feb

 

Notification of event likely to give rise to a claim requires at least 50% chance of claim (UK case)

 

 

 

 

Patrick Bracher, Director
Norton Rose Filbright South Africa Inc.
 

 

 

The policy obliged the insured to ‘give notice in writing to the insurer as soon as possible after the occurrence of any event likely to give rise to a claim with full particulars thereof’. An employee was injured at work using a gun for attaching wire together on 22 September 2011. At the time of the accident it was not asserted that the manufacturer of the gun was to blame. A letter of demand in this regard was only received by the manufacturer on 18 July 2013. On 22 July 2013 the manufacturers notified their broker of the threatened claim who in turn notified the insurer.

The court held that the phrase ‘likely to give rise to a claim’ describes an event with at least a 50 per cent chance that a claim against the manufacturers will eventuate. The words do not mean that the duty to notify arises when the insured could have discovered with reasonable diligence that there was an event likely to give rise to a claim. The ‘as soon as possible’ requirement applies only after there has been an event likely to give rise to a claim. There was no room for a ‘rolling assessment’.

On the evidence, when the accident occurred involving the gun there was a possibility, but not more, that the accident involved a fault in the gun. There were other possibilities, for instance a fault in the way the gun was used or no fault at all. The likelihood of a claim could not simply be inferred from the happening of the accident and there had not been a failure to notify the event timeously.

(The case is Maccaferri Ltd v Zurich Insurance PLC).

 
Source: Norton Rose Fulbright South Africa Inc.
 
« Back to previous page Print this page » |
 

Breaking News »

Gig economy participants must ensure they have the right insurance cover

Johannesburg: Technology is changing the way we work and relate to the world, bringing great opportunities for flexible employment and extra income. We live in a world where people value personalisation in all ...
Read More »

  

Allianz named ‘International Corporation of the Year’ in Africa

Allianz recognized for its outstanding growth in Africa African insurance market presents long-term growth potential MUNICH, ABIDJAN, JOHANNESBURG: At the 5th annual Africa CEO Forum held in Geneva ...
Read More »

  

Setting aside arbitrator’s award for going beyond the dispute

Patrick Bracher, Director Norton Rose Fulbright South Africa Inc. Arbitration clauses must be construed liberally to give effect to their essential purpose which is to resolve legal disputes arising from commercial ...
Read More »

  

Failure of PI insured to report potential malpractice suit (US)

      Patrick Bracher, Director Norton Rose Fulbright South Africa Inc.   The question debated in a claim under a lawyers’ professional indemnity policy ...
Read More »

 

More News »

Image

Healthcare »

Image

Investment »

Image

Life »

Image

Retirement »

Image

Quick Survey »

  Sponsored by
Image
Does your company plan on hiring additional employees in 2017?


|Results »
Image
Image
Image
Image
Image
Advertise Here

From The Glossary »

Icon

Insurance Broker:

An agent on behalf of the insured who negotiates the terms and cover provided by the insurer in the insurance policy.
More Definitions »

 
 
By using this website you agree to the Terms of Use.
Copyright © Stoker Risk & ICT (Pty) Ltd 2004 - 2017.
All Rights Reserved.
Icon

Advertise

  Icon

eZine

  Icon

Contact IG

Icon

Media Pack

  Icon

RSS Feeds