Reinsurance News

BI policyholders criticise insurers over unpaid claims

2nd October 2020 - Author: Charlie Wood

The Hiscox Action Group, which earlier this month won a High Court ruling on the validity of their COVID-19 related Business Interruption claims, have released a statement criticising the volume of claims that remain unpaid.

The Hiscox Action Group consists of 400 Hiscox policyholders whose coronavirus-related business interruption claims had originally been rejected.

The FCA and the group believe the subsequent High Court judgement provided clarity and payments should begin without delay.

The legal representative for the Hiscox Action Group, Mishcon De Reya Partner, Richard Leedham, says he is disappointed with what he believes is an attempt by insurers to appeal the court’s ruling and further delay paying out customers on BI cover.

According to a statement, Hiscox and other insurers are refusing to engage in these payments and now look likely to appeal the court’s ruling, a move they say puts further strain on businesses across the UK.

“We are hugely disappointed that it appears this case will now go to the Supreme Court and that appeals are likely against the court’s ruling,” said Leedham.

“Our group is made up of 400 small businesses from across the UK. They are in desperate need of these initial pay-outs and every day that the insurers delay this process risks hundreds of firms going out of business and thousands of jobs being lost for good.

“The insurers seem content for the process to continue for as long as possible. We believe that the court’s ruling was clear, and insurers should begin their payments immediately.”

In a statement relesed today, the FCA said that its intention has, throughout the process, been to achieve clarity on affected BI policies at speed, and that it believes clarity was provided in the initial judgment handed down on 15 September.

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