Claims Direct Test Cases, Re

Claims Direct Test Cases, Re

The sum claimed as a 'premium' under the Claims Direct Protect Scheme was not wholly recoverable as an insurance premium under Section 29 of the Access to Justice Act 1999. Only the actual cost of the insurance element, as determined by the court, is recoverable. Collateral benefits such as claims handling services are not recoverable as part of the insurance premium. The amount allowed by the Master (£621.13) was reasonable and proportionate; the higher sum claimed was not.

Parties
Claimant: 16 Claimants in Claims Direct Test Cases; Defendant: First and Third Defendants (liability insurers); Defendant: Second Defendants (liability insurers)
Jurisdiction
England and Wales
Judgment Date
12 February 2003
Procedural Posture
Civil Appeal / Appeal From Queen’s Bench Division, Supreme Court Costs Office
Outcome
Appeal dismissed
Legal Topics
Recoverability of Insurance Premiums, After the Event (ate) Insurance, Costs Assessment, Collateral Benefits, Reasonableness and Proportionality of Costs
Civil Procedure Insurance Law Costs Recoverability of Insurance Premiums After the Event (ate) Insurance Costs Assessment Collateral Benefits Reasonableness and Proportionality of Costs

Case Brief

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Parties

16 Claimants in Claims Direct Test Cases

Claimant

First and Third Defendants (liability insurers)

Defendant

Second Defendants (liability insurers)

Defendant

Procedural Posture

Civil Appeal / Appeal From Queen’s Bench Division, Supreme Court Costs Office

Legal Issues

  1. 1 Whether the sum payable by a claimant under the Claims Direct Protect Scheme is a recoverable insurance premium under Section 29 of the Access to Justice Act 1999
  2. 2 Whether any benefits purchased by insurance are collateral or extraneous and to what extent their costs are recoverable
  3. 3 Whether the amount claimed as premium is reasonable and proportionate

Ratio Decidendi

The sum claimed as a 'premium' under the Claims Direct Protect Scheme was not wholly recoverable as an insurance premium under Section 29 of the Access to Justice Act 1999. Only the actual cost of the insurance element, as determined by the court, is recoverable. Collateral benefits such as claims handling services are not recoverable as part of the insurance premium. The amount allowed by the Master (£621.13) was reasonable and proportionate; the higher sum claimed was not.

Court Disposition

Appeal dismissed

Orders

  • The sum recoverable as insurance premium is £621.13 per claimant, inclusive of IPT.
  • No further sum is recoverable as premium under Section 29 of the Access to Justice Act 1999.