UK FCA to take UK Insurers to Court – C19 Update
With one noble exception, most Insurers with policy wordings that create cover for disease/business interruption have yet to confirm that they will be paying claims.
Worse still, many of them have issued formal repudiation letters to their policyholders.
It is shame that, at a time when the Nation is planning for recovery, several Insurers are running away from their contractual obligations to their clients.
This is not a uniquely Irish phenomenon however.
We note that the United Kingdom’s Financial Conduct Authority has indicated that they will be seeking a declaration from UK Courts in order to obtain clarity on business interruption (BI) insurance and to resolve doubt for businesses who are facing uncertainty on their claims. See: https://www.fca.org.uk/news/press-releases/fca-seeks-legal-clarity-business-interruption-insurance
We will continue to press these Insurers and remind them of the Central Bank of Ireland’s recent direction:
“Although the Central Bank expects that most policy wordings are clear in terms of what cover is provided and what cover exclusions are in place, where there is a doubt about the meaning of a term, the interpretation most favourable to their customer should prevail.” 27 March 2020
1 May 2020