Asia Insurance Bulletin 2018
Welcome to the latest edition of our Asia Insurance Bulletin.
In this edition, our lawyers discuss a variety of issues relevant to the Asia region, including:
Trade credit
Letters of credit and fraud exception – Petrosaudi Oil Services (Venezuela) Ltd v Novo Banco SA (1) PDVSA Servicos SA (2) PDVSA Services BV (3)
The English Court of Appeal has clarified a number of key features of Letters of Credit, including the “autonomy principle” and the scope of the fraud exception. The Court considered what evidence of fraud is required for a bank to legally withhold payment, and what is meant by the term “obligated to pay”.
Singapore legal insurance update
Enforceability of general declaration clauses – condition precedent to liability
In the case of Grace Electrical Engineering Pte Ltd v EQ Insurance Co Ltd [2016] SGHC 233, the Singapore High Court had to determine the ambit and scope of such a general declaration clause to determine whether a breach of the “conditions” would entitle the insurer to avoid liability.
Cyber risks
Preventing and dealing with ransomware attacks – a legal and practical perspective
Recent cyber-attacks have highlighted the growing danger posed by ransomware extortion. Cyber insurance holds a role in handling and preventing a ransomware attack, but it is less clear whether making a ransom payment is lawful in Hong Kong.
Professional and financial risks
Aggregation revisited – AIG Europe Limited v Woodman & Ors
In AIG Europe Limited v Woodman & Ors [2017] UKSC 18, the UK Supreme Court considered the proper construction of the aggregation clause in the English Law Society’s minimum insurance terms for solicitors in England and Wales. This decision is likely to be of considerable interest and relevance to Hong Kong and Singapore.
Medical malpractice
The medical indemnity insurance landscape in Singapore
A number of new entrants have emerged into the medical indemnity insurance market in Singapore for a number of reasons. With new key insurance providers, it seems that the market is becoming more competitive.