Knock-for-knock Agreement

What is a Knock-for-knock Agreement?

A Knock-for-knock Agreement is a type of arrangement often used by insurance companies in the event of a motor-related incident. Under this agreement, each party involved in the incident claims for damages through their own insurance policies, irrespective of who is at fault for the accident.

Short Description: An arrangement where each party to an incident claims their own insurance, regardless of who is at fault.

• Simplified Claim Process: Reduces litigation time and administrative costs by avoiding the lengthy process of establishing fault.
• Conflict Avoidance: Prevents disputes between insurance companies about blame and liability.
• Policyholder Protection: Ensures quick settlement for policyholders by leveraging their own coverage.

This agreement is particularly favored in fleet insurance, where numerous vehicles are covered under a single policy, simplifying the claims process and fostering amicable business relations between companies.