Legal Cost Specialists

Rules Committee in no doubt

I note that among the forthcoming changes to the Costs Practice Direction will be the deletion of the current CPD 39.2:

“Where there is a dispute about the insurance premium in a staged policy (which has the same meaning as in paragraph 19.4(3A)) it will normally be sufficient for the receiving party to set out in any reply the reasons for choosing the particular insurance policy and the basis on which the insurance premium is rated whether block rated or individually rated.”

I was trying to work out why this is going and then realised that it will not be needed once recoverability of ATE premiums ends. The Rules Committee is clearly not in any doubt that this will happen.

Still, is it not a bit premature given we are going to have a long run-off of old cases where staged premiums are claimed (probably a good five years)?

2 thoughts on “Rules Committee in no doubt”

  1. I very much oppose the provision anyway. Where a policy is individually rated, surely the rating should be explained? Eg “The policy was rated on an assessment of the risk of the insurer paying out being 35 per cent.” That enables you then to challenge or agree the premium, depending on whether the assessment was reasonable. Ultimatly, stripped of a lot of nonsense, this the real argument in the MOTTO case. The premium was based on a 35% assessment of risk, and there was argument as to whether that was the right assessment.

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