Insurance in UK Law

It may well be that, when two persons are jointly insured and their interests are inseparably connected so that a loss or gain necessarily affects them both, the misconduct of one is sufficient to contaminate the whole insurance ( Phillips on Marine Insurance, vol.

He is under a disability precluding him from imposing a claim. This difference is important, because if the policy of insurance should come, by assignment or otherwise, into the hands of a person who is not affected by the disability, then such a person can enforce the policy according to its terms, see Cleaver v. Mutual Reserve Fund Life Association, 1892, 1 Queen's Bench, p. 147, and Beresford v. Royal Insurance Co., 1938 Appeal Cases at p. 600.

These authorities confirm that the rights which the Insurance Company has acquired are rights which are subject to the arbitration clause. Likewise, the Insurance Company is not entitled to assert its claim inconsistently with the terms of the contract. One of the terms of the contract is that, in the event of dispute, the claim must be referred to arbitration. The Insurance Company is not entitled to enforce its right without also recognising the obligation to arbitrate.