The Financial Conduct Authority intend to obtain court declarations as part of a test case, aimed at resolving the contractual uncertainty around the validity of many BI claims. The case will run from Monday to Thursday for two weeks, commencing on Monday 20th July. The whole case will be televised and can be watched on streaming TV here.
The result of the test case will be legally binding on the insurers that are parties to the test case in respect of the interpretation of the representative sample of policy wordings considered by the court. It may also provide persuasive guidance for the interpretation of similar policy wordings and claims that can be taken into account by other insurers, in other court cases and by the FCA and the UK’s Financial Ombudsman Service. The test case is not intended to encompass all possible disputes, but to resolve some key uncertainties to provide clarity for policyholders and insurers. It will not determine how much is payable under individual policies, but will provide the basis for doing so.
When payments are being made by insurers, they are deducting any Grants that policy holders may have received to support them through COVID-19.
Action against Lloyds has been successful, with the insurers told to make full settlement without deduction. Axis has also advised that successful claims will no longer require the Coronavirus (COVID-19) Business Support Grant to be offset.
ASSC and PASC UK have written to the Association of British Insurers to ask what their policy was on this.
You can keep up to date with progress by following this facebook group.