knock-for-knock


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knock-for-knock

an agreement between insurance companies that has considerable practical effects for many motorists, although not strictly speaking a legal institution. The agreement means that an insurer will, under a fully comprehensive policy, pay the losses of its own insured and will not insist upon raising an action against the other companies insured. If there are uninsured losses, the motorist may have to raise his own action in any event. The idea of insurance companies giving no-claims bonuses whereby they reduce the premium charged if there is no claim means that the issue of fault still has to be resolved, although some companies may still treat the claim as a claim destroying the bonus if they have settled knock-for-knock regardless of the issue of fault.
References in periodicals archive ?
A knock-for-knock provision provides that each party to the agreement agrees to indemnify the other (and their respective contractors) for claims arising from their own company's employees, regardless of who is at fault.
Because it is not a legal imperative to inform the police after a crash without personal injury, the insurance companies pay out on a knock-for-knock basis after their own inquiries.
The driver admitted liability, but when we contacted the company to claim for the damage, they requested our insurance details, claiming it was a knock-for-knock situation.