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hfw bulletin January 2009 |
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 AIRMIC Reservation of Rights
The Association of Insurance and Risk Managers (AIRMIC) and various insurers have recently issued a Statement of Principles to guide the usage of formal dispute resolution proceedings and Reservations of Rights (“RORs”).
In essence, the Statement of Principles states that for the first 90 days post-notification of any loss reasonably anticipated to exceed £2.5m: - Insurer will not pre-emptively initiate any formal dispute resolution proceedings (including but not limited to Court proceedings or arbitration) or issue any ROR;
- After notification, insurer and insured will communicate on a “without prejudice” basis in relation to policy response, required claim information and timetable for resolution;
- If the above cannot be determined, insurer can proceed without reference to Statement of Principles.
Download pdf Provided by Holman Fenwick Willan - www.hfw.com
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