LPC Law Notes > Multiple Institutions LPC Law Notes > Insurance Law Notes

Insured Losses Notes

This is a sample of our (approximately) 4 page long Insured Losses notes, which we sell as part of the Insurance Law Notes collection, a Distinction package written at Multiple Institutions in 2013 that contains (approximately) 51 pages of notes across 14 different documents.

Learn more about our Insurance Law Notes

The original file is a 'Word (Docx)' whilst this sample is a 'PDF' representation of said file. This means that the formatting here may have errors. The original document you'll receive on purchase should have more polished formatting.

Insured Losses Revision

The following is a plain text extract of the PDF sample above, taken from our Insurance Law Notes. This text version has had its formatting removed so pay attention to its contents alone rather than its presentation. The version you download will have its original formatting intact and so will be much prettier to look at.

Insured Losses 'Insured Loss': The pecuniary disadvantage proximately caused by an insured risk to the insured's interest in the subject matter insured. This loss falls within the terms of the policy. 'Total Loss': Where the SM insured is totally lost to the insured due to an insured peril. o

S.57(1) Actual Total Loss: Codification. Where SM insured is destroyed or so damaged as to cease to be a thing of the kind insured, or where the assured is irretrievably deprived thereof.

o

S.57(2): No notice of abandonment need be given.

o

S.58: Where a ship is lost and no news after a reasonable time, then deemed on actual total loss. This is only applicable for marine insurance.

Pay Out: In the event of a total loss insurers are obliged to pay full value of the insured interest, calculated either by: a) Insurable value in case of an unvalued interest - market value (s.28 MIA). b) Insured/agreed value in case of valued interest - insurers pay notional sum agreed (s.27).
= Where UW pays out for total loss it is entitled to have what remains of the SM. There is effectively an automatic transfer of proprietary rights to what remains of the SM as UW paid out indemnity. NB. Policy limits / deductibles apply - limits UWs' exposure - doesn't give a deemed value to SM (Kyzuna Investments Ltd).
------------------------------------------------------------------------------------------------------------------------------------Partial Loss 'Partial Loss': Any other loss to the insured's interest in the SM insured which does not amount to total loss suffered by reason of an insured peril (s.56(1) MIA). Pay Out: Insurers are obliged to indemnify the insured in respect of the diminution in value of the thing, by reference to: a) Insurable value in case of an unvalued interest. b) Insured / agreed value in case of a valued interest. Reduce agreed value by proportion of damage incurred. For both a) and b) - Not insured for repair value, just a proportion of the loss in value suffered. E.g. Laptop worth £500 insured against 'loss in value' by an insured risk. Damage caused, leading to repair costs of £250. Insured, by way of partial loss, could recover either: a) Unvalued policy - Look at market value. Diminution is £250 (i.e. 50% of the insurable value). Here the extent of partial loss equals repair costs. b) Agreed value of £250 and laptop suffered 50% damage (i.e. £125 = 50% of agreed value).
= Here the laptop owner has a choice. They can either go to the insurer and claim total loss (£250) and abandon the laptop to the insurer. Or they can claim for partial loss and receive £125, but that is insufficient for repair. Needs another £125. Would have done better if covered for repair costs. This is in contrast to the principle of average.
-

Scott v. Copenhagen Reinsurance Ltd; Adopt a 'wait and see approach'. Maybe recovered later or suffer total loss.
-------------------------------------------------------------------------------------------------------------------------------------

****************************End Of Sample*****************************

Buy the full version of these notes or essay plans and more in our Insurance Law Notes.