Legal Affairs

Reinstatement value conditions equivalent upheld in US

In three similar cases in North Dakota US the court upheld a provision in the insurers property owners policy that excused the insurer from paying “on a replacement cost basis for any loss or damage until the lost or damaged property is actually repaired or replaced” and the repairs and replacements are made “as soon as reasonably possible after the loss or damage”. Otherwise the policyholder is only entitled to an indemnity on an actual cash value basis.

Recent reminder by Courts: Respect restraints – or pay the price…

The South African courts have by and large, consistently upheld an employer’s right to restrain an employee form unfairly competing with a former employer where certain conditions have been met.

Policy interpretation: flood endorsement (Botswana)

Accumulation concerns for cyber business

A Munich Re management board member has stated that the insurer is prepared to divest cyber business over accumulation concerns. The board member said that there is a need to recognise and understand accumulation potential in order to develop a sustainable cyber insurance market. Overexposure could lead to failures.