Liability Flashcards
Liability policy
Cause financial/other loss to 3rd party as a results of insureds actions
Types of policies
Loss occurring
Claims made
Two main steps in assessing liability claims
Accident fall in policy terms?
Ascertain facts and investigate
Process of investigation
Adjuster and assessor review evidence Relationship of P and D Evidence Statements Photos Professional evidence Quantum Settle or defend
Laws
Tort/civil-negligence
Contract
Statute-laws in place
Negotiate
Insured is liable
Insurer offers settlement
Defend
Insurer not liable Volenti non fit injuria Self defence Statutory authority Force mejour
Indemnity
Special damages
general damages
Legal expenses (deep pocket theory)
Punitive/exampliary damages
Standard conditions imposed by contracts
Insurers right to conduct proceedings on behalf of insured
Obligation of insured to take reasonable precautions
Obligation to minimize loss suffered
Insured prohibited to admit liability
Terry v trafalgar insurance co ltd
Insured has discretion but must remember DOC
Groom v Crocker 1939
If insurer takes over proceedings they can still deny indemnifying
Soole v royal insurance co
Found out later breach of claim
Insured must take reasonable precautions
Fraser v furman
Between insurer and insured
Privity of contract
Section 76 road traffic act 1961-refused compensation
Section 62 civil liability act 1961-insured dies or does insolvent
Objectives of insurance companies
Minimize pay out Avoid litigation Deal with claims efficiently Deter reckless behavior Maintain reputation
