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KembaraXtra – Legal Terms – Knock-for-Knock
A knock-for-knock agreement is an arrangement between insurance companies, particularly in motor insurance, whereby each insurer agrees to cover the losses of its own policyholder regardless of who was at fault in an accident.
This system simplifies claims handling and reduces legal costs and delays. However, it does not prevent individuals from pursuing legal action against another party, and liability may still be determined separately. The agreement is primarily an administrative convenience between insurers.
A knock-for-knock agreement is an arrangement between insurance companies, particularly in motor insurance, whereby each insurer agrees to cover the losses of its own policyholder regardless of who was at fault in an accident.
This system simplifies claims handling and reduces legal costs and delays. However, it does not prevent individuals from pursuing legal action against another party, and liability may still be determined separately. The agreement is primarily an administrative convenience between insurers.
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