Friday 26 August 2011

The War in Libya & Liberation of Tripoli/Insurance Claims

It is of course fantastic news that the people of Libya & Tripoli have managed to almost gain their freedom to rule the country in a democratic way, and we wish them the very best for the future with hopefully no more bloodshed or in fighting.

There has of course been a terrible human loss and massive property damage in Libya but of course if a Libyan had taken out a standard worded insurance policy either for life or property they may well find that the insurance policy would not be able to respond to any claims based on a terries & war exclusion that the insurance policy may have had.

Naturally it will be very difficult to obtain a policy wording placed in the London market where brokers would be able to now offer without large exclusions for those Libyan companies or people who want to obtain insurance or anywhere in the Middle East at present.

Brokers would also find  that if they were able to get a policy, the cost would be very high and certainly not cheap.

Going forward brokers should always now be careful as to how their clients are presented with the policy covers and exclusions or they could easily find themselves with a Professional Indemnity Insurance claim, from a client who has not been given correct definitions or explained in detail the problems that having a war and terrorist exclusions brings with it.