IPT05170 | Calculating the value of the premium: separate contracts: the Homeserve case

Our interpretation of the law explained in IPT05165 was tested by the case of Homeserve Membership Limited [2009] EWHC 1311 (Ch). This case concerned the provision of domestic emergency insurance through an intermediary that also provided services to the insurer and repair services to the insured person in the event of a claim. The judgment, handed down by the High Court on 18th June 2009, stated that legally any contract that was not the taxable insurance contract was a separate contract. Consequently any amount charged under the separate contract fell outside the scope of IPT.