ABSTRACT
Chapter 3 first demonstrates that aggregation mechanisms are impartial features. In whose benefit they work is not predictable before the (re)insurance cover is triggered in a specific case. It, further, sets forth that aggregation mechanisms are generally not implied into contracts of (re)insurance. Thus, unless the parties explicitly provide for an aggregation clause in their contract, a plurality of individual losses will not be aggregated.
The main part of the chapter shows that the concept of causation lies at the heart of aggregation mechanisms. The required strength of the relevant causal links depends on the unifying factor and the linking phrase contained in the aggregation clause.
Chapter 3 analyses the English case law regarding the unifying factors of ‘event’, ‘originating cause’, ‘original cause’, ‘occurrence’, ‘accident’, ‘act or omission’, ‘catastrophe’, ‘calamity’, ‘disaster’ and ‘source’. It further discusses the linking phrases of ‘arising out of’, ‘arising from’, ‘consequent upon or attributable to’, ‘in connection with’ and ‘shall result from’. The chapter concludes that the effect a particular set of unifying factor and linking phrase has on the causal requirements inherent in an aggregation mechanism is unpredictable.
