However, snack agreements have been criticized by insurers as unfair to the party not responsible for an accident. If, for reasons of administrative facilitation, the insurer pays to repair the damage suffered by its own insured instead of prosecuting the person responsible for the accident for all relevant costs, an effective claim is claimed against the insurance card of that policyholder. In this way, « toc-to-knock » agreements can lead policyholders to unexpectedly realize, when renewing their insurance, that they should expect higher premiums, regardless of the liability of an accident in which they participated. « Knock for knock » is a joint contractual agreement in the oil and gas industry.  The operator of an oil and gas property needs the help and know-how of many types of contractors, including drilling companies, drilling service providers, facility builders, equipment suppliers and caterers. As a general rule, the operator will use these services as part of a master service contract that defines the essential general conditions under which the work is performed. One of these conditions is the distribution of the risk of loss between people and property. In general, a knock-for-knock agreement means that any party working on an oil and gas site – the operator and any contractor – agrees to protect and compensate all other parties against violations by employees and agents of that party as well as the destruction or damage of that party`s property. This allowance is not based on the fault or guilt of the individual whose staff was injured or whose property was damaged.
The objective is to effectively defend and pay a debt through the co-responsibility of a single party responsible for the loss. Often, additional formulations are added to change the knocking effect to hit. There are differences in the wording and scope of the typing provisions, but the basic concept is that Part A bears the risk (and Part B compensates) all claims that are filed against Part B for: « Knock for knock » is a regulation usually used in the offshore oil and gas industry. It is often found only in disputes that arise after a serious disaster, when the parties concerned try to determine whether they (or one of their contractual partners) should be held financially responsible for the costs of the disaster. Compensation is generally awarded by each party on behalf of all employees and real estate within its « group. » Individuals and companies belonging to the « groups » of each contracting party are defined in the agreement and generally include a party`s subcontractors and affiliated companies, as well as all their employees, executives and guests. Since a party is responsible for all claims to its group, it is important that the scope of each party`s « group » be carefully defined in the definitions. A knock-for-knock agreement is an agreement between two insurance companies that, if the policyholders of both companies suffer losses in the same case of insurance (usually a car accident), each insurer pays the losses incurred by its own policyholder, regardless of who is responsible.