Discuss the implications of the various types of payments made in Claim Two above.

You are a claims handler for an insurance company and are dealing with two insurance claims as follows:

Claim One

A claim by the next of kin following the death of an employee who was killed by a forklift truck during thecourse of their employment. The forklift truck was being operated in a non-designated area by a temporarymember of staff, provided by an employment agency.

A settlement payment for the death of the employee of £750,000 has been made under the Employers’Liability policy and a payment of £400,000 under a life policy. Claim Two A claim under a travel policy for bodily injury and damage to personal possessions.

The claim occurred whenthe policyholder was on holiday abroad and went on a trip organised by a local travel provider.The insurer agreed the bodily injury claim but did not pay for the personal possessions, as they fell within the policy excess of £100. The policyholder’s claim was settled for £15,000.

The insurer pursued the local travel provider and due to fluctuations in exchange rates received £18,000.The local travel provider was concerned about reputational damage and provided the policyholder with a freeholiday worth £2,000.

(a)Explain, with justification, the rights of recovery that are available for the payments made in Claim One above. Refer to one relevent case in support of your explanation.(10)

(b)Discuss the implications of the various types of payments made in Claim Two above. Refer to onecase in support of your discussion

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