Two first party insurers paid statutory accident benefits to their insureds and made requests for loss transfer from second party insurers.
The second party insurers refused to pay, and the first party insurers initiated arbitration proceedings.
The second party insurers argued the claims were barred by the Limitations Act, 2002.
The Court of Appeal held that the two-year limitation period for loss transfer claims begins to run the day after the first party insurer makes a demand for loss transfer, not from the date the second party insurer definitively refuses to indemnify.
The appeals by the first party insurers were dismissed.
