Insurer Trenwick and the owner of an injured racehorse are still locked in a claims dispute, two years after the horse owner filed his claim.

The quarrel over the £20,000 claim has already resulted in legal action against Trenwick, but the Bermuda-based insurer is standing its ground.

Trenwick had insured a young colt, Spinning World/Mediation, for £40,000.

Additional insurance of half the animal's value had also been bought in case it could not be presented in the August 2000 Deauville sales.

In April 2000, the horse injured itself in a paddock and ruled itself out of the sales.

Trenwick refused to pay out on the injured animal so, in April last year, the horse's owner sued the insurer.

The owner's broker, GIF director Joe Abouchalache, said this prompted Trenwick to appoint an independent vet to assess the loss.

He added that the vet supported the original claim, but that Trenwick now wanted to appoint another vet.

"This is bad," he said. "It's clear-cut. It is a big company and it is refusing to pay."

A Trenwick spokesman said the matter was not as simple as it seemed. He added: "We refuse to comment. We don't conduct claims settlement through the press."