In AIG Europe (Ireland) Ltd v Faraday Capital Ltd – Lawtel 22.11.07 the Court of Appeal considered what would amount to a ‘loss which may give rise to a claim’ in the context of a reinsurance policy where the reinsured was to give notice of such loss within 30 days pursuant to the claims co-operation clause in the reinsurance policy.

It held that the loss envisaged in the clause was not necessarily the loss which would in due course constitute the claim. On any view the sharp fall in the share price was, looking at the matter from the shareholder's point of view, a "loss", and on any view it was a loss which "might" give rise to a claim. It was also true to say that that "loss which may give rise to a claim" was "known" to the reinsured in this case.