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9.7.2 Therefore, it is agreed that the insurer has the right not to, and shall be under no obligation
to, investigate any potential claims or to undertake the conduct of any proceedings in
connection with such claims but will be free to leave the conduct of such proceedings wholly
with the insured.
9.7.3 In such cases, the insurer will transfer the conduct of proceedings to the insured and will
clearly set out the conditions as regards the payment of costs and the insured’s freedom to
commit the insurer to any settlement by compromise or otherwise. Provided that any
settlement or compromise is made within these conditions, this policy will provide an
indemnity as otherwise stated.
9.7.4 Further, the insurer may at any time pay the limit of indemnity (af ter deduction of any
sums already paid) or such lesser sum for which the claim can be settled and will relinquish
the conduct and control of the claim and be under no further liability except (where payable
under the relevant insured section) for payment of defence costs incurred prior to the date
of payment.
9.8 Disputed defence or appeal
If any dispute arises between the insured and the insurer as to whether a prosecution
should be defended or an appeal made, such dispute will be referred to a Queen’s Counsel
(or equivalent) to be mutually agreed between the parties (or in default of agreement to be
nominated by the President of the Law Society) whose decision will be final. In the event of
conflict between any other insured party separate representation will be arranged for each
party.
9.9 Retention

9.9.1 If the insured event forms the subject of indemnity under more than one of the insured
sections to this policy, the insured’s maximum liability for the retention will be the highest
applicable retention.
9.9.2 If settlement of an insured event investigated or defended by the insurer under this policy
does not exceed the amount of the applicable retention, the insured will pay, or reimburse
the insurer for, as applicable, any defence costs and paid damages including claimant
costs recoverable from the insured and incurred in connection with such insured event.

9.10 Subrogation
9.10.1 Except as provided by the ‘Waiver of subrogation’ clause under insured section A and the
‘Statutory defence costs including Health and Safety At Work, etc. Act 1974’ clause under
insured section E, for each and every claim, the insured and any person acting on behalf
of the insured must not waive any rights of recourse or recovery against any other person
relating to an occurrence, loss or suit that may give rise to a claim under this insurance.
9.10.2 The insured or any other party insured by this policy will, at the request and expense of the
insurer, do and concur in doing and permit to be done all such acts and things as may be
necessary or reasonably required by the insurer for the purpose of enforcing any rights and
remedies, whether such acts and things will be or become necessary or required before or
after their indemnification by the insurer.
9.10.3 In the event of any payment under this insurance, the insurer will act in concert with all other
interested persons (including the insured) concerned in the exercise of any rights of
recovery.
9.10.4 The apportioning of any amounts which may be so recovered will follow the principle that any
interested persons (including the insured) who will have paid an amount over and above
any payment hereunder will first be reimbursed up to the amount paid by them; the insurer
is then to be reimbursed out of any balance then remaining up to the amount paid
hereunder; lastly, the interested persons (including the insured) to whom this coverage is in
excess shall be entitled to claim the residue, if any.
9.10.5 Expenses necessary to the recovery of any such amounts will be apportioned between the
interested parties concerned in the ratio of their respective recoveries as finally settled.

PPBL010121 Public Authority Combined Liability Insurance Policy (UK) Page 32 of 48