Claims Settlement

Types of Insurance

We have settled claims under the following types of Policy: 

• Property 
• Cargo 
• Liability 
• Business Interruption 
• Surety / Performance Bonds 

Our aim is to avoid litigation by  attempting a negotiated settlement and then to review ADR pathways including Arbitration. 

Disputed Claims

It is common for insurers to deny a claim after an insured event occurs.  Insurers will use this tactic to buy time to establish whether cover applies and, if so, the amount which they are liable to pay under the contract of insurance.  They will seek to test whether representations, warranties and the utmost good faith duty to disclose relevant and material information was provided upon inception of the cover.  This allows the retention of premium income and an improvement in investment income.  On the other hand, they also have incentives to settle quickly if a claim is likely to succeed as this can release provisions made once an insured event is notified.

Other ADR

We have associates who are qualified Mediators and Adjudicators (construction) should those pathways be more appropriate.

Arbitration

Arbitration requires party consent. It can arise under a pre-existing Arbitration Clause in the underlying agreement but also after a dispute has arisen if the parties agree to that.  This requires a binding agreement which incorporates their choice of rules and jurisdiction. 

Arbitration under most rules (ICC, LCIA etc.) can be lengthy and expensive. It does, however, have the benefit that Awards are internationally enforceable. 

Our Principal can act either as an Arbitrator or simply strategic adviser to the client.  Or alternatively, as an Expert Witness where there is relevant Expertise. 

Guiding Principles

• Avoid allowing legal (and other) advisers to unilaterally define and execute their own work plans. 
• Negotiate hard on professional and legal fees. 
• Insist on budgets, reports on variances at milestones. 
• Put in place controls, milestones (time and cost) and incentives.  
• Continuously monitor work, costs, progress and significant departure from the ‘plan’. 

Approach

1. Prepare a well drafted ‘Statement of Case’ – force out key issues and spot weaknesses in evidence and legal argument.
2. Explore a negotiated settlement – prevent the situation from escalating, early resolution through compromise.
3. Explore Alternative Dispute Resolution pathways.
4. Prepare briefs, choose and appoint professional / legal team.
5. Commence ADR or litigation.