Bure Valley fights insurance claim rebuff

THE Bure Valley Railway (BVR) has had an insurance claim rejected following its decision to close the tourist attraction because ofthe coronavirus pandemic.

BVR managing director Andrew Barnes had worked in Canada during the SARS crisis several years ago, and decided to take out business interruption insurance, which included an extension covering an unspecified notifiable disease occurring within 25 miles of its premises.

"This was the most comprehensive cover available in the UK market;' said Mr Barnes. "The Association of British Insurers website had been saying this was the type of policy that would pay out in the event of Covid-19, but this has now been changed to say that only pandemic insurance will payout.

'Challenge'

"This is a bit of a challenge as no pandemic insurance has ever been written in the UK!" The reason given for rejecting the claim was that BVR losses were not a result of the virus, but as a resu It of action taken by Government to restrict movement, and this was uninsured.

BVR challenges this on the basis the Government action was a direct result of the virus, and this was the primary cause.

BVR's fight against the insurer's decision has generated considerable publicity, including an extensive April 30 article on the railway and its claim in the Insurance Times, an insurance industry publication.

On May 1, the Financial Conduct Authority announced plans to bring test cases over the wording of a number of business interruption insurance policies where claims have been rejected by insurers.