JUDGMENT IN PRINCIPLE ON LEGAL EXPENSES INSURANCE - RENT TRIBUNAL CASES
A landmark judgment has just been handed down on the question of whether there is such an industry practice that insurance companies are obliged to provide legal expenses cover for rent tribunal cases, even if it is expressly stated in the insurance conditions that cases that are or may be heard by a tribunal are not eligible for legal expenses cover. Another recent judgment on the exclusion of legal expenses insurance coverage for tribunal cases is also mentioned.
The judgment shows, among other things, that as the conditions of the legal expenses insurance are designed, the policyholder must wait for the possible handling of the dispute by a complaints board before legal proceedings are initiated; even if it would be advantageous for the insured, due to e.g. slow case processing, if they did not first have to wait for the handling and decision in a complaints board case.
The judgment also shows that when the insured has the opportunity to have the case decided on the merits by a competent board, the cost of conducting legal proceedings instead of a board hearing will not be considered a reasonable expense in the sense of legal expenses insurance. However, as mentioned, the insurance company may also refuse legal expenses cover on the grounds that when a case is or can be heard by a complaints board, there is no legal expenses cover.
Michael S. Wiisbye is of course available if you have any questions about the judging.