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25 April 2013 / Frank Maher
Issue: 7557 / Categories: Opinion , Risk management , Profession , Insurance / reinsurance
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Avoiding the Balva trap

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Was Balva an accident waiting to happen, asks Frank Maher

Balva—a name which will cause trepidation among members of the 1,300 law firms—one in eight of the profession—who insured with them.

There is no suggestion that they are insolvent. But then equally, what reassurance is available? The unaudited fourth quarter accounts for 2012 will not, on their own (if at all), provide that assurance.

As the English section of Balva’s website states: “Activities of Balva have not stayed unnoticed by international professional organisations.” The Financial Conduct Authority register notes: “The Latvian regulator has prohibited this firm from writing any new business in the UK, effective 1 March 2013.” It is not clear when this note was added, but it first appears to have come to the attention of the press around 12 April 2013, a worrying time lapse.

A secure future?

Now, it is entirely possible that the measures taken by the Latvian authorities will secure Balva’s future, but it will require a degree of faith from policyholders to

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NEWS
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A Court of Appeal ruling has clarified that ‘rent’ must be monetary—excluding tenants paid in labour from statutory protection. In this week's NLJ, James Naylor explains Garraway v Phillips, where a tenant worked two days a week instead of paying rent
Three men wrongly imprisoned for a combined 77 years have been released—yet received ‘not a penny’ in compensation, exposing deep flaws in the justice system. Writing in NLJ this week, Dr Jon Robins reports on Justin Plummer, Oliver Campbell and Peter Sullivan, whose convictions collapsed amid discredited forensics, ‘oppressive’ police interviews and unreliable ‘cell confessions’
A quiet month for employment cases still delivers key legal clarifications. In his latest Employment Law Brief for NLJ, Ian Smith reports that whistleblowing protection remains intact even where disclosures are partly self-serving, provided the worker reasonably believes they serve the ‘public interest’ 
Family law must shift from conflict-driven litigation to child-centred problem-solving, according to a major new report. Writing in NLJ this week, Caroline Bowden of Anthony Gold outlines findings showing overwhelming support for reform, with 92% agreeing lawyers owe duties to children as well as clients
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