Reservation of Rights - AIRMIC to act
AIRMIC is to take up the question of reservation of rights by insurers. Several members have complained that their underwriters are routinely using this device on large claims regardless of the individual merits of the case. The result, inevitably, is to make discussion more difficult and to oblige both parties to take legal advice.
“The increasing tendency of insurers to appoint lawyers early on in the claims process can only stifle debate between insured, insurer and broker,” said chief executive John Hurrell.
“There’s a place for this type of practice but it should not become routine. The only winners are the lawyers.” AIRMIC’s first step will be to establish the facts and the strength of feeling among the membership before taking these concerns to the market. Anyone wishing to air their views on the subject is encouraged to contact John Hurrell on 0207 480 7610, john.hurrell@airmic.co.uk
