Joshua Munro introduces a first for English law: the equitable right of an insurer to compensation from its own insured in respect of the claim on the policy
As if the forthcoming advent of the Insurance Act 2015 were not excitement enough for insurance lawyers, on 20 May 2015 the Supreme Court gave judgment in International Energy Group v Zurich [2015] UKSC 33, [2015] All ER (D) 170 (May), an extremely important decision on employers’ liability policies and annual policies generally.
Facts of the case
The problem faced by the court was as follows. IEG is an energy firm and employer in Guernsey. For a period of over 27 years from 1961 to 1988, IEG's predecessor firm employed Mr Carré and exposed him to asbestos dust. Carré subsequently contracted and died of mesothelioma.
On 22 September 2008 Carré brought proceedings against IEG claiming that he had sustained mesothelioma consequent on his exposure to asbestos dust throughout his 27-year period of employment with GGLCL. IEG settled his claim on 19 December 2008 by a compensation payment consisting of £250,000 in damages and
