Fisher Scoggins Waters is a London-based law firm with an expert in construction, manufacturing and engineering. If you have questions about dual insurance or contributions on construction contracts or if you need legal advice in another area, call us on 0207 993 6960. Complex construction projects that have a number of policies at any one time can lead to dual insurance problems. If more than one insurance policy covers a particular injury, the insured must decide which policy he or she is entitled to. In this situation, the insurance, which has to pay, often searches the other insurer for a premium. However, it appears that it has not been sufficiently developed to apply to all insurance policies. The case discussed above is an example of a situation that fell outside of Section 45. There have been several insurance agreements. They are stated as follows: “No fee is refundable if the insured is insured beforehand or later elsewhere, unless the information provided by that insurance is communicated in writing to the company.” Double insurance (or dual insurance, as it is called) is created when the same party is insured against the same risk and for the same period with two or more insurers for the same interest in the same property. Each of these elements must be present to create a double insurance.
It is very unlikely that dual insurance is intentionally introduced and is often random. As the Bovis case shows, contribution issues can be very complex and result in costly legal invoices when lawyers are to be consulted to get rid of the case. While double insurance may seem comforting at the beginning of a massive construction project, the reality is that one policy per issue can be much easier to manage if you ever have to make a claim. Given the absence of an independent contribution right of insurers under UAE law, it is important that insurers pre-emptively treat the possibility of dual insurance in their insurance texts. The best way to achieve this is to include “another insurance clause” in the directive described above. One of the most common myths related to dual insurance and the aspect you probably know the most is that it is illegal to be insured twice. One of the most confusing areas of insurance law is “double insurance” and the principle of contributions. To understand the principle of contribution, it must always be kept in mind that the basic principle of compensation is this: in the contract, the Authority has agreed to organise a complete set of insurance policies that provide not only itself, but also all contracting parties, including Alliance policyholders.