Indemnity cases

Question 1

Insurers who rebuild must rebuild in same state

Answer 1

Brown v Royal Insurance (1859)

Question 2

Party with interest in property can require insurers to reinstate

Answer 2

Fires Prevention (Metropolis) Act 1774

Question 3

Non life insurances are contract of indemnity

Answer 3

Castellain v Preston (188)

Question 4

Cost of reinstatement indemnity not market value or cost of new building

Answer 4

Reynolds And Anderson v Phoenix Assurance (1978)

Question 5

Market value appropriate measure of indemnity

Answer 5

Leppard v Excess Insurance Co Ltd (1979)

Question 6

“Elcock” rule – If partial loss on an agreed value insured is entitled to the percentage reduction in value caused by the loss.

Answer 6

Elcock v Thomson (1949)

Question 7

Insured was paid reinstatement costs even though had not commenced rebuilding, Cost of replacing the property is the correct measure of indemnity, as long as the insured genuinely intended to do this.

Answer 7

Great Lakes Reinsurance (UK) SE v. Western Trading Ltd (2016)