News

DeHeng Successfully Represented China Insurance

in a Co-insurance Dispute Case

2020-08-19


Recently, DeHeng received a favorable second-instance judgement for a co-insurance dispute between Beijing Branch of China United Property Insurance Company Limited ("China Insurance") and a property insurance company over property all-risk insurance. The verdict was held successfully for China Insurance that the sued property insurance company should share all insurance indemnities and insurance assessment costs with China Insurance. 


Co-insurance means that two or more insurance companies and their branches (not including different branches of the same insurance company) use the same insurance contract to insure the same subject, the same liability, for the same period and the same amount. In recent years, the number of cases related to co-insurance disputes has been increasing year by year.


In this case, a provincial cable television network (group) company ("television network company") purchased the property all-risk insurance from China Insurance for all its properties within the province. The policy adopts a co-insurance method, with China Insurance as the lead underwriter and the aforementioned property insurance company as the co-insurer, and the two parties singed a Co-insurance Agreement. 


At the end of June in 2017, a large area of continuous heavy rainfall occurred in the aforesaid province. Due to excessive rainfall, the lines and equipment of regional network of the television network company in the province were damaged. China Insurance, as the lead insurer, actively fulfilled the obligations stipulated in the insurance contract and the Co-insurance Agreement, and compensated in installments the losses of the insured caused by heavy rains and floods. After the completion of the claims settlement, China Insurance claimed to the co-insurer to share all the insurance claims and assessment expenses, and the property insurance company kept deferring citing various reasons. After fruitless negotiations, China Insurance filed a lawsuit against the co-insurer. 


After receiving the commission from China Insurance, the DeHeng team, composed mainly of partner Jia Hui and lawyers Wang Guofeng and Wu Wenbo, conducted a careful sorting and analysis of the main facts and the focus of the dispute with the client's executives, claims settlement officers, and underwriting officers. Thanks to DeHeng lawyers' unremitting efforts and careful preparation, the court of second instance approved their claims and argument in this case and supported China Insurance's claims despite the unfavorable first-instance judgment. After winning the case, China Insurance expressed its gratitude to DeHeng lawyers for their hard work, and highly praised their professionalism and dedication.

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