Explore the Category

When is cover extended to companies in which insured has ‘majority interest?’ (US)

15 August 2017 | General

In August 2017, a US federal court ruled that the ordinary meaning of ‘majority interest’ in a liability policy where cover is extended to all companies in which the named insured holds a majority interest is a financial interest, either direct or indirect, of greater than 50% and not only absolute ownership or a controlling interest. Because there is an ambiguity in the term, one has to look into the ordinary meaning of majority interest.

Pension funds and commercial transactions

02 August 2017 | General

While section 197 of the Labour Relations Act, 1995 deals with transfers of a business as a going concern, the impact of the section 197 transfer on employee benefit schemes becomes a key focus in the transfer. If transferring employees are able, following the transfer, to remain contributing members of their existing pension fund, then no difficulties arise. However, often, this is not possible.

‘Due observance’ and ‘condition precedent’ policy terms

24 July 2017 | General

A Singapore High Court held that a clause in a policy that ‘due observance and fulfilment of the terms provisions and conditions of this policy insofar as they relate to anything to be done or not to be done by the insured … shall be conditions precedent to any liability to make payment’ will not be given effect to if it would give rise to an absurdity and deny cover for the very risks insured.

Breach of policy requirement not to settle or disclaim liability does not include plea in criminal proceedings

14 July 2017 | General

An insurer in Singapore alleged that the insured had breached the obligation not to ‘make any admission in connection with any claim’ by pleading guilty to five charges of failing to comply with fire regulations. The defence was rejected on the basis that a person’s unfettered freedom of choice as to how to plead in criminal proceedings is highly important. Any restraint imposed on that freedom of choice by a condition in a contract is contrary to public policy and cannot be construed that way.

quick poll

Question

What do you believe will be the biggest challenge when the COFI framework is finally implemented?

Answer

The cost and complexity of relicensing Demonstrating customer outcomes through data and reporting Embedding a customer-first culture across the business Aligning existing compliance frameworks with COFI requirements

View the Results