Legal Liabilities Directors and Officers Liability Conditions


Claims Conditions If in relation to any Claim, The Association fails to fulfil or observe the requirements imposed upon it by (1), (2) or (3) The Association or any Insured Person will lose their right to indemnity or payment for that Claim.


(1) Claims Notification


If during the Period of Insurance, regardless of any Excess, The Association or any Insured Person


(a) receive any Claim, The Association shall give written notice to Us as soon as practicable


(b) become aware of any circumstance that might give rise to a Claim, The Association shall give written notice to Us of such circumstance as soon as practicable. Any Claim subsequently arising from any circumstance notified to Us shall be deemed to have been made during the Period of Insurance in which the notice of such circumstance was first received by Us


(c) discover a reasonable cause for suspicion of any dishonesty or fraud on the part of any Insured Persons, whether whether giving rise to a Claim or not, The Association shall give written notice to Us of such discovery as soon as practicable.


Provided always that any such written notice under any part of this Condition (1) is received by Us during the Period of Insurance.


Any written notice should be sent to


The Claims Manager Professional Risks Aviva Level 3 Pitheavlis Perth


PH2 0NH


Tel: 0845 3028408 Fax: 0845 3028409 Email: prclms@aviva.co.uk


(2) Admission of Liability


In the event of a Claim or the discovery of a circumstance that might give rise to a Claim, The Association or any Insured Person must not admit liability for or settle any Claim, or incur any related costs or expenses, without Our written consent.


(3) Claims Control and Subrogation


In the event of a Claim or the discovery of a circumstance that might give rise to a Claim, We will be entitled, at Our own expense at any time, to take over and conduct in the name of an Insured Person the defence or settlement of any such Claim or circumstance.


We shall not settle any Claim without the consent of the Insured Persons. If however the Insured Persons shall refuse to consent to any settlement recommended by Us, then Our liability for such Claim (including Defence Costs) shall not exceed the amount for which the Claim could have been settled inclusive of Defence Costs, incurred with their consent up to the date of such refusal and then only up to the Limit of Indemnity state in The Schedule.


If We do take over and conduct the defence or settlement of any such Claim, The Association or any Insured Person shall give Us all such information and assistance as We may reasonably require and that is in The Association’s or any Insured Persons power to provide.


Without prejudice to the generality of the above, Your duty to assist Us includes


(a) providing all such information, assistance, signed statements or depositions as may be required to facilitate compliance with any civil procedure rules, practice directions and pre-action protocols as may be issued


(b) allowing Us to present the best possible defence of a Claim within the time constraints available


(c) ensuring ready access to all and any information that We may require in the defence of a Claim or investigation of a Loss


(d) ensuring the payment, on demand, of the Excess in conjunction with the terms of any settlement agreed by Us.


We retain all rights of recovery available to The Association or any Insured Person in respect of any payment which may be made under this Section.


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