1. The Client's Situation
A manufacturing company (hereinafter the "client") had taken out an advance-payment performance guarantee insurance in connection with a particular project, but it needed a legal review of whether an insurance claim could still be made even after the insurance period had elapsed. In particular, since a lawsuit over whether the contract had been performed had been pursued, it was necessary to clearly confirm the statute-of-limitations issue and the possibility of making an insurance claim.
2. Your Legal Team's Advice
After closely analyzing the relevant contract and the progress of the litigation, Your Legal Team focused not only on whether the general statute of limitations (three years) for the insurance-claim right applied, but also on the possibility that the starting point of the statute of limitations could differ where a legal dispute had been pursued.
Accordingly, the team reviewed the possibility that the statute of limitations could begin to run anew based on the point at which the occurrence of the insured event was confirmed, confirmed that a claim could be made within three years after the court's judgment became final, and, in preparation for the possibility that the insurer might assert completion of the statute of limitations, proposed a measure of sending a certified content-proof letter (content-certified mail) to interrupt the statute of limitations.
3. Result
Based on Your Legal Team's advice, the client was able to clearly determine the possibility of making an insurance claim, and to prepare a legal response - interrupting the statute of limitations - by proactively sending a certified content-proof letter to the insurer. Through this, it was able to maximize the possibility of recovering the insurance proceeds and to establish a strategy in preparation for future litigation.