UK lines up insurance firms for Covid compensation test case
Insurers including Hiscox, RSA and QBE will take part in a UK test case to decide whether their policies should pay out millions of pounds to companies hit by the coronavirus pandemic, the industry regulator said on Monday.
Lockdown has triggered insurance claims from companies seeking compensation for having to shut down their activities as a result of the coronavirus crisis.
Britain’s Financial Conduct Authority (FCA) said last month it would seek clarity from the courts on whether the wording of some insurance policies should provide cover during the pandemic.
The FCA said it has selected 17 examples from business interruption insurance policies used by 16 insurers, eight of whom were asked to take part in the court case.
“We expect the test case to provide guidance for the interpretation of many other business insurance policies that are not in the representative sample,” the FCA said.
