In KAIROS SHIPPING LTD & STANDARD CLUB LTD V ENKA & CO LLC & ORS 2014 EWCA Civ 217, Karios sought a declaration that it was entitled to constitute a limitation fund
(a fund providing a maximum limit for its claims liability under the International Convention on Limitation of Liability for Maritime Claims 1976) by means of a guarantee in the form of a letter of undertaking provided by a protection and indemnity (P&I) club.
Read More UK: Court Of Appeal Rules a Limitation Fund Can Be a Guarantee as an Alternative to a Payment Into Court
United Kingdom
IMD2: Further Delays to Adoption
By Troutman Pepper Locke on
Posted in United Kingdom
On 26 February 2014, a plenary session of the European Parliament voted on the proposals to revise the Insurance Mediation Directive (the revised Directive commonly referred to as IMD2). However, despite certain amendments being approved by the Parliament, a vote to approve the latest draft was deferred and the draft was referred back to the Committee on Economic and Monetary Affairs. …
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UK: Commercial Court Considers Construction of ‘Follow’ Clause
By Troutman Pepper Locke on
Posted in Coverage & Claims, United Kingdom
In San Evans Maritime Inc & ors v Aigaion Insurance Co SA [2014] EWHC 163 (Comm), the Commercial Court was asked to determine three preliminary issues arising from a ‘follow’ clause in a contract of insurance. …
Read More UK: Commercial Court Considers Construction of ‘Follow’ Clause
UK: Financial Ombudsman Awards Are (Mostly) ‘Final’ Again
By Troutman Pepper Locke on
Posted in Regulatory, United Kingdom
In Clark & Anr v In Focus Asset Management & Tax Solutions Ltd, the Court of Appeal overturned a controversial High Court decision on complaints to the Financial Ombudsman Service. …
Read More UK: Financial Ombudsman Awards Are (Mostly) ‘Final’ Again
UK: Mesothelioma Bill Becomes Law
By Troutman Pepper Locke on
Following agreement by both Houses of Parliament, the Mesothelioma Bill received Royal Assent on 30 January 2014, becoming the Mesothelioma Act 2014 (the Act). …
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UK: Case Illustrates Need for Third Party (Rights Against Insurers) Act 2010 to be Enacted
By Troutman Pepper Locke on
In Impact Funding Solutions Limited (Impact) v. Barrington Support Services Limited (Barrington) v. AIG Europe Limited (AIG) (third party) [2013] EWHC 4005 (QB), the Court had previously ordered that Barrington (a company providing legal services) pay Impact (a third party litigation funder) £581,353.80 in damages for Barrington’s breaches of a Funding Agreement between Barrington and Impact. Under the Funding Agreement, Impact would provide a loan to Barrington’s clients to fund personal injury claims. …
Read More UK: Case Illustrates Need for Third Party (Rights Against Insurers) Act 2010 to be Enacted
FCA Imposes Record Fine for HomeServe’s Widespread Breaches of FCA’s Principles of Business
By Troutman Pepper Locke on
Posted in Regulatory, United Kingdom
The Financial Conduct Authority (FCA) has fined HomeServe Membership Limited (HomeServe) £30,647,400 for breaching several of the FCA’s Principles of Business. The FCA states its final notice that HomeServe’s failings were “serious, systemic and long running”. …
Read More FCA Imposes Record Fine for HomeServe’s Widespread Breaches of FCA’s Principles of Business
UK: Financial Conduct Authority Increases Scrutiny of the Insurance Sector
By Troutman Pepper Locke on
Posted in United Kingdom
The UK’s Financial Conduct Authority (FCA) has indicated that it is likely to exercise its competition functions in the insurance sector in the next few months, including by examining retirement annuities and insurance add-ons.
Read More UK: Financial Conduct Authority Increases Scrutiny of the Insurance Sector
UK: Law Commissions Publish Draft Clauses to the Insurance Contracts Bill
By Troutman Pepper Locke on
Posted in Regulatory, United Kingdom
As part of their ongoing law reform project, the Law Commission and Scottish Law Commission (the Commissions) have published a number of draft clauses relating to the Insurance Contracts Bill as part of a limited consultation. …
Read More UK: Law Commissions Publish Draft Clauses to the Insurance Contracts Bill
UK: BIBA Manifesto 2014 Highlights Cost of Brokers’ Regulation in the UK
By Troutman Pepper Locke on
Posted in Regulatory, United Kingdom
The British Insurance Brokers’ Association (BIBA) has launched its 2014 Manifesto (available here) in UK Parliament. BIBA addresses its campaigning issues in three ways: delivering for consumers; businesses; and the insurance industry. …
Read More UK: BIBA Manifesto 2014 Highlights Cost of Brokers’ Regulation in the UK