Covid-19 claims ‘must be paid’
HOPE FOR FIRMS IN INSURANCE FIGHT
SOME of the world’s biggest insurers wrongly rejected tens of thousands of claims from small firms plunged into crisis by the coronavirus pandemic, the High Court ruled.
The judgment could pave the way for businesses to finally receive payouts for lost trade when the national lockdown was ordered in late March.
It comes after some insurers tried to wriggle out of coughing up, arguing Covid-19 wasn’t covered.
City watchdog the Financial Conduct Authority brought an urgent test case against eight insurers, including Hiscox, RSA, QBE and Zurich, to clarify what policyholders could expect.
In a complex judgment the court backed policyholders in most, but not all, the issues raised.
The ruling directly impacts tens of thousands of firms whose claims,aims, as of June, had either been rejectedd or put on hold. However, it also has implicationsications for
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The online supermarket said customers were ordering an extra five items per shop on average since the change happened on September 1.
The tie-up, which saw M&S replace eplace Waitrose’s long-standing deal, suffered ffered a rocky start with orders cancelled elled after demand outstripped supply. ply.
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Christopher Woolard, FCA interim chief executive, called the judgment a “significant step in resolving the uncertainty”.
Richard Leedham, partner at law firm Mishcon de Reya, which represents Hiscox customers who joined forces to form the Hiscox Action Group, said the outcome would “provide a lifeline for small businesses across the country”.
But Huw Evans, director-general at the Association of British Insurers, said the ruling “divides evenly between insurers and policyholders”.
Hiscox said just under one third of its 34,000 UK business policies would now pay out, with a bill of around £100million. But the ruling could be appealed, which would delay fufunds getting to businessness customcustomers that are already
on the brinbrink of collapse.