Cl. 8-5 provides:
Decisions required in respect of casualties, adjustments or claims against third parties may be made without the participation of any co-assured third party.
The Clause was new in 2016, but corresponds to the provision found in Cl. 8-1, sub-clause 2, of the 2013 Plan which contained a reference to Cl. 7-3, sub-clause 1.
The provision states that a co-assured third party is not entitled to participate in claims handling in respect of casualties, adjustments or claims against a third party. All decisions in this respect may be taken without the co-assured third party’s agreement. This is the same rule that applies to a co-assured mortgagee, cf. Cl. 7-3, sub-clause 1. It would be inexpedient and bothersome to involve a third party in the settlement of a claim. If the party effecting the insurance wants to secure a better position for the co-assured third party, this must be agreed with the insurer.