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29 Cards in this Set
- Front
- Back
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What is an indemnity?
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An undertaking by a party to hold another harmless against loss or expense or to compensate for it.
At law, an indemnity is a legally binding promise by which one party undertakes to accept the risk of loss or damage another party may suffer. Essentially, it is a promise to ‘hold harmless’. |
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Is an insurance policy and indemnity?
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Yes
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Must an indemnity be capped?
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No, they can be unlimited.
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What is the risk to the principal by adding as many indemnities in as they can?
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By getting a party to sign to indemnify them it may make the indemnifiers insurance unavailable.
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What is contract works insurance?
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Covers damage to all permanent and temporary works as well as materials stored on site. It excludes consequential losses.
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What is public liability insurance?
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Generally covers liability to third parties for loss or damage, to third party persons and property, arising from the works. Normally excludes injury to workers and damage to worker’s property.
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What is professional indemnity insurance?
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Generally covers liabilities arising from professional errors and omissions. Third party cover only – i.e. policy owner not covered.
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What is Industrial Special Risks Insurance?
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Used to cover exclusions on policies.
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What is Plant and Equipment Insurance?
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Generally covers costs of loss, damage to or theft of plant and equipment of owner or hired by the contractor.
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What is Motor Vehicle Insurance?
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Generally covers costs of loss, damage to or theft of plant and equipment of owner or hired by the contractor.
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What is Workers Compensation?
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Provides compensation to workers and protection to their employers in the event of a work related injury or disease.
Required by law in NSW (Workers Compensation Act 1987) |
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What is Marine Transit Insurance?
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Generally covers insured party against loss or damage to materials in transit, being shipped from overseas
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What is Product Liability Insurance?
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Covers losses arising out of the defective nature of goods manufactured or supplied by the insured. This covers both property damage and personal injury as a result of the use of the insured’s products.
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What is a dispute?
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A dispute arises when one party claims something and the other party notifies the other that he rejects the claim.
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What triggers dispute resolution?
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Where there is actually a dispute, not just a disagreement, but a claim and rejection of that claim. This must still be defined in the contract.
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What is a claim?
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Legal demand or assertion by a claimant for compensation, payment, or reimbursement for a loss under a contract, or an injury due to negligence.
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What is Alternative Dispute Resolution (ADR)?
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Those forms of dispute resolution other than the courts and court-like bodies which impose authoritative decisions on the disputing parties.
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What is mediation?
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A third party assists the parties to negotiate their own settlement (facilitative mediation). It is a private and confidential process. In some instances, mediators may express a view on what might be a fair or reasonable settlement, generally where all the parties agree that the mediator may do so (evaluative mediation).
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Can a mediator give an opinion?
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In some case yes, they can express a view on what might be a fair or reasonable settlement.
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Is a mediation binding?
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No, but the agreement reached as a result may be.
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What is conciliation?
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A third person (the conciliator) attempts to bring the disputing parties to a mutual agreement or compromise. If a resolution through conciliation is not possible, the conciliator may make a suggested solution that is not binding on either party.
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Can a conciliator suggest a solution?
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Yes, if the parties cannot agree, they can do so.
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Is the decision of a conciliator binding?
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No
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What is arbitration?
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Arbitration is a formal dispute resolution process governed by the Commercial Arbitration Act 1984 NSW (Statute) in which two or more parties refer their dispute to an independent third person (the arbitrator) for determination.
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Is arbitration binding?
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Yes – it can be enforced in courts
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What is expert determination?
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Similar to arbitration, except the third party can introduce their own knowledge in to the decision
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Is expert determination binding?
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Yes – it can be enforced in courts
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What is the chain of escalation for dispute resolution?
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Negotiation, mediation, conciliation, arbitration, determination, litigation.
NMCADL |
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What is litigation?
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Litigation is the process of bringing a legal dispute to court.
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