Sets out the procedure the insured must follow on becoming aware of an occurrence that may lead to a claim. Notice may be required ‘immediately’, as soon as possible’ or within a specified time. The notice should include information as to the occurrence and, in the case of liability insurance, the insured is cautioned not to admit liability. The condition is a condition precedent to liability. See LAUNDRY LIST.
Tag: RAW
Notification of a Claim
Non-life insurance policies normally contain a condition requiring immediate notice of an occurrence that may give rise to a claim. In some cases a time limit is specified.
Notional Reinstatement Value Cover
A form of property insurance cover whereby the insured declares the reinstatement value at the outset of the insurance period and estimates an amount to allow for inflation for which an additional premium is payable in arrear, based on an adjustment.
Notional reinstatement value scheme
See: ‘Day One’ Of Reinstatement Cover.
Novation
A method of assigning contracts where a new contract is formed between the old and new parties.
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UK: a process whereby a new contract is substituted for an existing contract, the latter being cancelled; such a process requires the agreement of all parties to the original contract.
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REINSURANCE: A three party reinsurance transaction wherein a new party “steps into the shoes” of the party to an existing contract. The substitution of a new contract, debt or obligation for an existing one, between the same or different parties. A novation may substitute a new party and discharge one of the original parties to a contract by agreement of all parties. The requisites of a novation are 1) a previously valid obligation; 2) an agreement of all the parties to a new contract; 3) the extinguishment of the old obligation; and 4) the validity of the new obligation.
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UK: The agreement to substitute a new contract for an existing one. It happens when insurers agree to transfer a policy from one person to another as, for example, when insured property changes hands. The insurer’s consent is required as most contracts of insurance (life and marine contracts excepted – see assignment) are personal contracts.
Novus actus interveniens
A new act intervening. It breaks the chain of causation. See PROXIMATE CAUSE.
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A new and intervening act or omission, or a natural event, which breaks the casual connection between a previous act or omission and damage alleged to have resulted therefrom.