The following Insurance & Reinsurance practice note Produced in partnership with Susie Wakefield and Matthew Brown of Shoosmiths LLP provides comprehensive and up to date legal information covering:
There are various reasons why an insured may end up with overlapping insurance cover, whether deliberately or otherwise.
Examples include the situation where the insured takes the benefit of other insurance arranged by another party or where, in the commercial world, risk managers may be unaware of prior insurances effected by predecessors in their role.
Similarly, an insured may inadvertently take out insurance in respect of specific property without realising that the property is already covered by an existing policy with a broader scope of cover. Alternatively, the insured may simply wish to increase its amount of cover or, conceivably, to protect itself against the risk of its insurers becoming insolvent.
There is no common law requirement to avoid double insurance. Nor is there any common law duty to inform an insurer that other policies exist, save if their existence changes the nature of the insured risk, for example, gross over-insurance resulting in heightened moral hazard (Mathie v The Argonaut Marine Insurance Co Ltd (1925) 21 Lloyd’s Law Reports 145 (not reported by LexisNexis®)).
However, the existence of multiple insurances of the same subject matter is seen as increasing the opportunity for fraud. That is because it enables unscrupulous insureds an opportunity to recover more than their loss by claiming on more than one policy, each underwritten by insurers unaware that other cover exists.
As a result,
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Dividends involve a distribution of cash or a distribution of non-cash assets (known as a distribution in kind or a distribution in specie).A scrip dividend (in a tax context, sometimes referred to as a stock dividend) allows a shareholder to receive new shares in a company as an alternative to a
When is quantum meruit and quantum valebat relevant?Claims in quantum meruit (value of services) and quantum valebat (value of goods) arise in diverse situations ranging from where contractual terms are silent on issues of payment to where there is no contract at all (Serck v Drake & Scull).General
What is quia timet relief?Injunctions are generally awarded where a party has already suffered a wrong. For guidance on injunctions generally, see Practice Note: Injunctions—guiding principles. However, an injunction may be sought before a party's rights have been infringed on the basis that they
This Practice Note provides guidance on the interpretation and application of the relevant provisions of the CPR. Depending on the court in which your matter is proceeding, you may also need to be mindful of additional provisions—see further below.Note: this Practice Note does not deal with the
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.