16 December, 2017
(1) When does the limitation period start to run for insurance contract?
The 6 year limitation period starts to run from the date of the insured event. For liability insurance, it starts to run from the date that liability is established by judgment, arbitration award or binding settlement.
(2) When does the limitation period start to run for reinsurance contracts?
The 6 year limitation period starts to run from the date when the reinsured's liability is established and quantified by judgment, arbitration award or binding settlement.
(3) Can the limitation period be suspended and/or interrupted, and if so, how?
The limitation period can be suspended by a standstill agreement between the parties. If the claim is acknowledged, time will start to run again from the date of acknowledgement.
(4) Can the express terms of the insurance policy and/or reinsurance contract have the effect of altering the start date for the limitation period?
Yes.
For further information, please contact:
Ik Wei leads, Partner / Managing Director, Asia, Clyde & Co
ikwei.chong@clydeco.com
