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More than half of companies that have filed valid business interruption claims due to the pandemic have already had a payout from their insurance companies, the Financial Conduct Authority (FCA) says.
More than 20,300 of 37,700 policyholders who have had their claims accepted have got a full or partial payment, with insurers paying out £757 million so far, Law360 reported.
The news comes after a High Court test case was brought last July by the FCA against eight insurers in order to force a ruling on whether policies on business closure that had additional clauses would offer cover to companies affected by the pandemic.
In January, the Supreme Court ruled that in most cases, insurers are liable.
This is especially true when the policy offered cover for closure as a result of outbreak of infectious disease.
“We remind firms of the need to handle claims promptly and fairly and to provide reasonable guidance to help a policyholder make a claim,” the FCA said. As of April this year, only 38 per cent of valid claims had been paid out.
The FCA said Monday, since the Supreme Court ruling, insurers had made payments to almost 4,200 customers, to the tune of £289.6 million.
“Any [business interruption] policyholders who believe they may have a claim but have not submitted this to their insurer should do so as soon as possible in accordance with the policy document,” the FCA said.
Meanwhile, representatives of UK travel agents have gone before a committee of UK members of parliament to warn that — if more is not done in the wake of the pandemic — a generation of travel agents would lose their livelihoods.
At the same time, U.K.’s Competition and Markets Authority (CMA) has launched a probe into British Airways PLC and Ryanair DAC to determine whether the companies broke the law by denying passengers refunds for flights cancelled during the COVID-19 pandemic.
Have you tried to file an insurance claim related to the pandemic? Let us know your experience in the comments!
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