Knock-for-knock Agreement - Other Contexts

Other Contexts

'Knock for knock' is also used in a specific, analogous sense, for example, the following, cited in the "Law at War", from the US Army website :

In addition to handling these routine matters, the chief of the Claims Section participated in the negotiations with the Korean government concerning the payment of foreign claims generated by troops of the Army of the Republic of Korea who were active in South Vietnam. In fact, the MACV Staff judge Advocate's office was to play a vital role in the negotiation and implementation of certain claims agreements with the Vietnamese government and the Free World allies which came to be known as "knock-for-knock" agreements. These compacts contained provisions whereby the government of one nation waived the claims against the government of the second nation for damage to government property. The agreements did not, however, waive the personal right of an individual to claim damages in the case of negligence of a member of the force of another allied nation. The arrangements nevertheless removed a potential irritant to the relationships among the Free World forces.

However, regardless of the agreement between the insurers, once the client makes a claim or the insurer pays the client from his/her policy the insurer has to reinstate the client's No Claim Discount (NCD) hence, the claim wont and should not affect the client policy especialy if that client was not at fault.