In Commercial Union Assurance Co. v. Lister (1874) 9 Ch App 483 the owner of a building insured it against fire, but unfortunately not to its full value. Following a fire caused by the negligence of a third party, the court stated that the presence of any uninsured loss entitled the owner to conduct the action without any interference from insurers:
"[The insurers] assert that in such a case the insured person, though entitled to bring an action for the loss he has sustained, is not entitled to be master of that action; and they assert that, though he is bringing it bona fide, and is acting bona fide, he is not entitled to compromise that action, or to do anything else, without their assent.
I can find no ground whatever for such a suggestion. He is entitled to bring an action against the corporation for the injury to himself. He is entitled and is bound, and has agreed as there is one cause of action, to bring the action for the whole loss to himself, including that part of the loss against which he is indemnified by the insurance company."
However, where different types of loss are suffered by the insured, e.g. property damage and personal injury, which give rise to two separate causes of action, then two sets of proceedings could be instituted against the party responsible, with the insurer in charge of one and the insured in charge of the other.
Willis J. Watson is a freelance writer since 2006, living in United States and he writes about he enjoys the most...insurance policies. If you want to read more informations about Commercial Insurance Agents, you can check out his websites.
"[The insurers] assert that in such a case the insured person, though entitled to bring an action for the loss he has sustained, is not entitled to be master of that action; and they assert that, though he is bringing it bona fide, and is acting bona fide, he is not entitled to compromise that action, or to do anything else, without their assent.
I can find no ground whatever for such a suggestion. He is entitled to bring an action against the corporation for the injury to himself. He is entitled and is bound, and has agreed as there is one cause of action, to bring the action for the whole loss to himself, including that part of the loss against which he is indemnified by the insurance company."
However, where different types of loss are suffered by the insured, e.g. property damage and personal injury, which give rise to two separate causes of action, then two sets of proceedings could be instituted against the party responsible, with the insurer in charge of one and the insured in charge of the other.
Willis J. Watson is a freelance writer since 2006, living in United States and he writes about he enjoys the most...insurance policies. If you want to read more informations about Commercial Insurance Agents, you can check out his websites.
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