8 Handling 3rd P Liab Claims

Question 0

Buildings - measure of damages

Answer 0

Cost of repair less a deduction for betterment
2 types betterment - some aspects prop in better condition than before loss eg new decoration. 2 repaired or replaced article is better eg now has sprinklers

Question 1

3rd party property claims

Answer 1

Motor accident
Pl
El

Question 2

Liab claims if claimant suceeds against defendant

Answer 2

In an action at law they are entitled to remedy
Injunctions (nuisance / tresspass) factory closed 12- 8
Damages 4 types

Question 3

4 types of Damages

Answer 3

Nominal damages - small value, recognise tort commited
Exemplary or punitive damages - deplorable outrageous acts
Special damages - the true financial losses that can be proven
General damages - sufferring caused - difficult to quantify

Question 4

Nominal damages

Answer 4

Small to recompense

Question 5

Exemplary damages or punitive damages

Answer 5

Deplorable or outrageous acts

Question 6

general damages

Answer 6

Where compensation is impossible to measure mathmatically - pain and suffering caused by injury

Question 7

Distinction between tort and contract damages

Answer 7

Tort - place claimant in position they were in before ax occured
Contract - place claimant in position they were in had the contract been performed

Question 8

Investigating coverage

Answer 8

Have notification rqments been met
No warranties or conditions breached¿
Description of business matches uw file

Question 9

Long tail claims

Answer 9

What trigger applies to pol
Who were prev insurers
Have any similar claims been made
Med evidence to support alledge disease
El written on losses occuring basis

Question 10

Liability claims - claim handler to assess

Answer 10

If insured is legally liable
Any indications of con neg
Anyposs subrogation recovery options
Does contribution apply - other policies likely to respond

Question 11

Docs and evidence to investiage liab claim

Answer 11

Statement from insured
Statement from eye witness
Evidence regarding safety equip
Training records
Safety records
S
Hve similar axs occured
Ax book

Question 12

2 types of lawyers to prevent conflicts of interest

Answer 12

Coverage lawyer - advice on coverage, may involve investigating the circumstances giving rise to the 3rd party liab claim
Defence lawyer - providing a defence to the insured, assessing liab and quantum, negotiating settlement

Question 13

Remedies available (if claimant succeeds against the defendent in an action at law

Answer 13

Injunction- order from court refraining from a certain course of action
Damages- monetary award to claimant for damages (4 types of damages, nominal /small, general damages/suffering cant £, exemplary or punitive/outrageous, special - liquidated damages - true financial loss which can be proven eg loss of earnings up to trial

Question 14

Investigating coverage - el and pl

Answer 14

Claims handler will check

• if notification requirements have been met
• that there are no warranties or conditions that may have been breached
• description of the business matches that detailed on the uw file, proposal form and pre policy inception docs

Question 15

El policy trigger - legal liability
Liable under tort, contract, statute, con neg may play a part. Claims handler will look to see if any negligence or breach of duty on part of employer they will also look to see if con neg applies. What docs to investigate the claim?

Answer 15

Statement from eye witness
Statement from line mger or foreman
Evidence regarding safety equip in use and any personal protective equipmemt
Safety records
Details of other similar accidents
Entry in the ax book
1st aid any hosp med records

Investigator checking
Circumstances match claimants version of events
Ascertain insureds view on claim

Question 16

El pl investigations, claims handler looking to establish

Answer 16

Is primary liab likely to attach
Any arguments to allege con neg
Any possible subrogation opportunities
Does contributiin apply ; are there any other policies that will respond