In addition to the usual loss information that we inform you regularly,it is our duty as a responsible cedant to add the non-incurred loss information as well. The reason why we do not put this loss amount into the reserve is mainly because we believe that the cause of loss is not answerable by the relevant policy but the insured is contesting our decision by forwarding the issue to a dispute resolution process such as arbitration or court of justice
According to our internal guideline,we will only recognize such dispute as a claim only after the verdict has been made in favour of the insured.The amount that will be put into the reserve is the award given.
This additional information given to is bring your attention to potential claims based of course on a Without Prejudice basis.It can develop in a full claim when we receive the final court verdict,agree to settle out-of-court,or decide to follow the lower court verdict;for instance.This will depend on our internal decision based on each circumstance
For the purpose of completion of our internal procedures and records,we shall be grateful if you could sign a copy of this letter in acknowledgement of receipt thereof,and
return to us.
In case you have any questions or need any clarifications or information please do not hesitate to contact us.