Legal and General Assurance Society Ltd v Drake Insurance Co Ltd: CA 15 Jan 1992

References: Gazette 15-Jan-1992, [1992] QB 887, [1992] 2 WLR 157
Coram: Lloyd LJ
Ratio: An insurance company, having paid under the policy to a doubly insured party, sought contribution from the second insurer, who had not been notified of the claim by the insured. The claim for a contribution was one in equity, but since the company had paid in excess of their true liability, because of a ‘ratable proportion’ clause, they were not entitled to recover any part of the voluntary payment. The matter should be looked at at the time of the loss before there was any non-compliance with the condition precedent.
Lloyd LJ said: l ‘the principles on which one insurer is entitled to recover from another in a case of double insurance have been settled since Lord Mansfield’s day’.
This case is cited by:

  • Not Followed – Eagle Star Insurance Co Ltd v Provincial Insurance Plc PC (Times 09-Jun-93, [1994] 1 AC 130, Bailii, [1993] UKPC 22)
    Two insurance companies were liable to contribute equally to an amount payable to a third party. The doctrine of contribution could be modified by contract and the matter should be considered by reference to the parties’ contractual liabilities. . .
  • Cited – Bolton Metropolitan Borough Council v Municipal Mutual Insurance Ltd CA (Bailii, [2006] EWCA Civ 50, Times 09-Feb-06, [2006] 1 WLR 1492, [2007] Lloyd’s Rep IR 173)
    The deceased had come into contact with asbestos when working on building sites for more than one contractor. The claimant here sought contribution from the defendants for the damages it had paid to his estate. The issue was as to liability on . .
  • Cited – The National Farmers Union Mutual Insurance Society Ltd v HSBC Insurance (UK) Ltd ComC (Bailii, [2010] EWHC 773 (Comm), [2010] 1 CLC 557)
    Gavin Kealey QC DHCJ set out the concept of double insurance: ‘Double insurance arises where the same party is insured with two (or more) insurers in respect of the same interest on the same subject-matter against the same risks. If a loss by a . .
  • Cited – Zurich Insurance Plc UK Branch v International Energy Group Ltd SC (Bailii, [2015] UKSC 33, [2015] Lloyd’s Rep IR 598, [2015] WLR(D) 233, [2015] 2 WLR 1471, [2016] AC 509, Bailii Summary, WLRD, UKSC 2013/0057, SC, SC Summary, SC Summary Video)
    A claim had been made for mesothelioma following exposure to asbestos, but the claim arose in Guernsey. Acknowledging the acute difficultis particular to the evidence in such cases, the House of Lords, in Fairchild. had introduced the Special Rule . .

(This list may be incomplete)

Last Update: 18 March 2019
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