Are There Any Restrictions On...
ChatterBank0 min ago
What Does This Clause Mean Please :-
6 Answers
Bit of an disagreement as to who pays the excess on an insurance claim. I understood it was whose names appears on the policy pays the excess. The freeholders (named on the policy) are claiming this clause (shown in endorsements and clauses) below means the person claiming has to pay:-
It is agreed the interest of various lessees, freeholders, mortgagees or debenture holders, in this insurance are noted at the request of the Insured. The Insured undertake to notify the names, nature and extent of such interests at the time of the damage.
There is nothing in the please to suggest the claimant should pay in the lease.
It is agreed the interest of various lessees, freeholders, mortgagees or debenture holders, in this insurance are noted at the request of the Insured. The Insured undertake to notify the names, nature and extent of such interests at the time of the damage.
There is nothing in the please to suggest the claimant should pay in the lease.
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Let's pretend that the policy holder didn't actually have any insurance cover at all (simply because that makes things easier to explain!):
If someone else has a legitimate claim against him for compensation he's then obliged to pay the claim in full HIMSELF.
If he's taken the precaution of getting some insurance cover, he can then turn to the insurer and say "Right, pay up, mate!"
However if that cover doesn't pay out the full amount (because of an 'excess' clause), it's still HIS responsibility to ensure that the claimant receives the full amount due. (The claimant can't be bound by any terms of a contract that he wasn't a party to).
So it's the POLICYHOLDER who must meet the excess.
If someone else has a legitimate claim against him for compensation he's then obliged to pay the claim in full HIMSELF.
If he's taken the precaution of getting some insurance cover, he can then turn to the insurer and say "Right, pay up, mate!"
However if that cover doesn't pay out the full amount (because of an 'excess' clause), it's still HIS responsibility to ensure that the claimant receives the full amount due. (The claimant can't be bound by any terms of a contract that he wasn't a party to).
So it's the POLICYHOLDER who must meet the excess.
I own a flat and the freeholder insures the premises. I had a leak in my flat and so far I have paid the excess. The rule of insurance is the person named on the policy has to pay the excess so in this case it is the freeholder as they are the policyholder. I have referred to a solicitor and there is nothing in the lease to suggest the person claiming should pay the excess;therefore I assumed the freeholder should pay. The freeholder is claiming the clause as quoted in my badly written (sorry)1st query is their get out & I should pay. Can there be a clause in the insurance policy to state who pays the excess as the freeholder claims?
As indicated above, you need to to ask who would have to pay for the repairs if no insurance had been in place. That person is responsible for ensuring that the full cost of the repairs is met. (If they can then claim all, or part, of the sum from an insurer that's to their benefit but it doesn't strip away their obligation to see that the full cost is met).
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