Facultative Reinsurance Contract Dispute

Summary

Facultative reinsurance contracts in Colombia are governed by explicit policy terms. To address a reinsurers denial of coverage due to strike exclusions, review the contract for ambiguous language, consider concurrent causation, and highlight industry practices. Legal concepts like force majeure, utmost good faith, and proximate cause may support your case. Consulting a local insurance law attorney is advisable for detailed guidance.

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the insured, EAAB, had a machinery breakdown loss covered under the first placement. However when installing the spares there was a strike that elongated the business interruption period. One of the reinsurers declined to cover this period claiming that under their binder strikes are excluded
In Colombia, insurance contracts, including reinsurance, are governed by the terms and conditions explicitly stated in the policy. Here are some general pointers that might help:
- Review the reinsurance contract to understand the terms of coverage and any exclusions related to strikes.
- Examine the specific clauses related to business interruption coverage and any applicable exclusions.
- Consider consulting a local lawyer specializing in insurance law for detailed advice on potential remedies or negotiations.
Would you like more information on how to find a local attorney who can assist with this matter?
What arguments can I present to the reinsurer to change his position
Here are some potential arguments you might consider presenting to the reinsurer:
- Contractual Interpretation: Highlight any ambiguous language in the contract that could be interpreted in favor of coverage.
- Concurrent Causation: Argue that the loss is covered if the machinery breakdown, a covered peril, is the primary cause of the business interruption.
- Custom and Practice: Point out industry practices where similar claims have been covered.
- Negotiation Leverage: Offer a compromise, such as a partial coverage agreement, to encourage flexibility.
Would you like guidance on finding local legal assistance for this matter?
Are there any sententences or legal concepts that may help
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Here are some legal concepts and terms that might assist you:
- Force Majeure: Check if this concept is applicable for events like strikes impacting the business interruption.
- Doctrine of Utmost Good Faith: Emphasize the duty of the reinsurer to act in good faith.
- Proximate Cause Principle: Argue that the primary cause of loss should dictate coverage.
If you need more detailed legal advice, consider consulting with a local attorney. Would you like more information on finding local legal assistance for this matter?