A broker highlights that a county court judge is indicating a policyholder not only does not need to pay a 'declaration' adjustment premium, but is also entitled to a full refund of the original annual (deposit) premium, due to uncertainty of contract (Letters, 2 February).
What the broker says in his letter is clearly indicative of the lack of understanding of the requirements and duties to a client policyholder.
I have studied many court judgments where, inevitably, the result has been 100% against the broker.
There is no doubt that, in broad terms, the procedures and standards of care of insurance brokers are well below those illustrated in the High Court. This comment can apply to brokers of all sizes up to national rank.
Professional indemnity insurers will face sharply increasing claims, in number and size, as policyholders realise that, if the insurer does not pay, the courts will have little difficulty in instructing the broker to pay.
Malcolm Ward
Director
MPW (Carlisle)
