Clause 8-1. Rights of third parties against the insurer
If the insurance is explicitly effected for the benefit of a third party, the insurance also covers this party’s interests within the scope and overall limits of the insurance.
Clause 8-2. Protection of third parties against subrogation claims from the insurer
The insurer does not have any right of subrogation against the co-insured third party unless and to the extent that such right is specified in the insurance contract or the co-insured third party has undertaken an express contractual obligation to an assured to remain liable for losses of the kind otherwise covered by the insurance.
The liability of the assured and co-insured third parties to each other shall not be excluded nor discharged by reason of co-insurance. Any payment to the assured or co-insured third party in respect of any liabilities, losses, costs and expenses shall operate only as satisfaction of the assured’s claim against the insurer but not exclusion or discharge of the liability of such person to the assured or co-insured third party.
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Clause 8-2. Protection of third parties against subrogation claims from the insurer
Sub-clause 2 was included in Version 2023.
Sub-clause 1 regulates the insurer’s right of subrogation against a co-insured, whilst sub-clause 2 clarifies the inter-parties liability between the assureds under the policy to safeguard the insurer’s right of subrogation against a third party that is not co-insured.
Clause 8-3. Application of the rules in Chapter 3 and Clause 5-1
The rules contained in Chapter 3, Section 1, shall apply correspondingly to the co-insured third party, provided that the co-insured third party is aware of the fact that it is named in the policy.
The insurer may invoke the rules in Chapter 3, Sections 2 – 5, or Cl. 5-1 against a co-insured third party.
The insurer may invoke the rules relating to identification in Cl. 3-36 to Cl. 3-38 against a co-insured third party.
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Clause 8-3. Application of the rules in Chapter 3 and Clause 5-1
The Clause was new in Version 2016. Sub-clause 1 is identical with Cl. 8-2, sub-clause 1, of the 2013 Plan, whereas Cl. 8-2, sub-clause 2, of the 2013 Plan is deleted. Sub-clause 3 repeats the identification clause found in the 2013 Plan, Cl. 8-1 in fine.
Clause 8-4. Amendments and cancellation of the insurance contract
If the insurance contract has been amended or cancelled, this shall also apply in relation to the co-insured third party.
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Clause 8-4. Amendments and cancellation of the insurance contract
This Clause corresponds to Cl. 8-3 of the 2013 Plan. The Clause was not amended in substance in 2016, but the words “any co-insured third party” has been replaced by the words “the co-insured third party”.
Clause 8-5. Handling of claims, claims adjustment, etc.
Decisions required in respect of casualties, adjustments or claims against third parties may be made without the participation of any co-insured third party.
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Clause 8-5. Handling of claims, claims adjustment, etc.
The Clause was new in Version 2016, but corresponds to the provision found in Cl. 8-1, sub-clause 2, of the 2013 Plan which contained a reference to Cl. 7-3, sub-clause 1.
Clause 8-6. Other insurance
If the co-insured third party’s claim for compensation under the insurance is also covered by other insurance it has effected, cover under this Chapter is subsidiary to that other insurance.
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Clause 8-7. Independent co-insurance of named third parties
If it has been explicitly agreed that the interest of a named third party shall be independently co-insured, the insurer may not plead that it has no liability due to an act or omission from the person effecting the insurance or another assured under the rules contained in Chapter 3 and Cl. 5-1.
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Clause 8-7. Independent co-insurance of named third parties
The Clause was amended in the 2027 Version, whereby the independent coinsurance of the mortgagee was moved into new Cl. 7-5. The purpose of the amendment is to compile the rights of insurance of the mortgagee in Chapter 7, and no material changes from the previous position are intended. The…
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Clause 8-1. Rights of third parties against the insurer
The Clause corresponds to Cl. 8-1, sub-clause 1, of the 2013 Plan. In Version 2016, the last part of the sub-clause was added and the identification provision previously found in the sub-clause was moved to Cl. 8-3, sub-clause 3.