In a successful contractual claim the Claimant claimed the cost of an After the Event Insurance policy in the sum of £63,000 (inc of IPT), being 30% of the indemnity provided under the terms of the policy. The Claimant’s solicitors had obtained one quote for ATE Insurance cover. The Defendants argued that the premium was excessive and there had been a lack of investigation as to the availability of a reasonable insurance premium. Should the Claimant’s solicitors have obtained more than one quote for legal expense cover?
In all the circumstances, it was reasonable for the Claimant to pay an ATE Insurance premium based on 30% of cover. The Claimant’s solicitors had considerable experience of the ATE market and the Defendants did not prove that a more suitable alternative premium was available. The Claimant had made a reasonable choice of ATE Insurance cover and to insist that he should have gone in search of alternative insurers would fail to have regard to the overriding objective, specifically CPR 1.1(2)(b) and (c)
Even with this very large premium, the Court ruled that so long as the premium was generally reasonable and broadly comparable to the market, it was not necessary to obtain more than one quotation for After the Event Insurance. It follows that this must apply even more so, where much smaller premiums are involved.
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