[Subrogation and contribution]

You are a claims handler for an insurer, XY plc, and are handling a claim under a policyholder's motor insurance policy. During a protest attended by several hundred demonstrators, damage was caused by some demonstrators to the policyholder's car that was parked in a street. XY plc arranged for collection and repair of the car, with its subsequent return to the policyholder at a total cost of 7,000. The policyholder was unhappy with the state of repairs made to the car, so XY plc agreed to take the car back so that the work could be carried out again at a further cost of 4,000. XY plc also gave the policyholder 2,000 as a goodwill gesture because of the poor state of repairs made to the car. In addition to the damage to the car, some of the policyholder's personal possessions, which are also covered under a home contents policy, were looted from the car during the protest. The motor insurance policy is subject to a 1,000 excess. (a) Explain, with justification, the legal implications of the losses occurring during the protest. Refer to one relevant statute in support of your explanation. (5) (b) Discuss the rights of recovery arising from the poor repairs, the goodwill gesture and the loss of the personal possessions. Refer to one relevant case in support of your discussion. (15) You are a claims handler for an insurer, XY plc, and are handling a claim under a policyholder's motor insurance policy. During a protest attended by several hundred demonstrators, damage was caused by some demonstrators to the policyholder's car that was parked in a street. XY plc arranged for collection and repair of the car, with its subsequent return to the policyholder at a total cost of 7,000. The policyholder was unhappy with the state of repairs made to the car, so XY plc agreed to take the car back so that the work could be carried out again at a further cost of 4,000. XY plc also gave the policyholder 2,000 as a goodwill gesture because of the poor state of repairs made to the car. In addition to the damage to the car, some of the policyholder's personal possessions, which are also covered under a home contents policy, were looted from the car during the protest. The motor insurance policy is subject to a 1,000 excess. (a) Explain, with justification, the legal implications of the losses occurring during the protest. Refer to one relevant statute in support of your explanation. (5) (b) Discuss the rights of recovery arising from the poor repairs, the goodwill gesture and the loss of the personal possessions. Refer to one relevant case in support of your discussion. (15)