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Major Win Against Insurance Sector

In the summer, our colleagues at the Professional Association of Self-Caterers (PASC UK) led and paid for a PR campaign to stop insurers deducting Government Grants from insurance pay outs during Covid. The ASSC supported this campaign, and a large number of you participated in the campaign, known as #justpayit.

Thank you, without your support nothing would have changed.

Initially the ABI (Association of British Insurers) were dismissive, the FCA pretty hopeless and the Treasury (Insurance Minister John Glenn, former Tourism Minister) didn’t really get what was happening. We managed to get over 225 MP letters to the FCA and treasury and lots of great coverage in the media. Finally getting traction with the FCA and HM Treasury in mid-September. The final breakthrough occurred last week and took place as follows:

THE FCA wrote to insurers as part of the Business Interruption Case and told them that this practice was not acceptable.

Letter here: https://www.fca.org.uk/publication/correspondence/dear-ceo-letter-business-interruption-insurance.pdf?fbclid=IwAR2wiATI99Xeexkv2U1wTO6ZyFCFVzBFgtocW2AQUrsFUb7ChhXOICsh5H4

The Treasury have written to the insurers too, saying further measures will be taken if they don’t stop the practice.

Statement here: https://www.gov.uk/government/publications/treatment-of-government-grant-support-schemes-in-business-interruption-insurance-settlements-letter-from-the-economic-secretary-to-the-treasury-to-th?fbclid=IwAR1nMi9vfUSZRyeVyEPm8Olc0T50gLTf0jwDQZfAuO7BpvO0UhRrgWDeO2s

And the letter itself: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/921682/EST_letter_to_Huw_Evans.pdf

The ABI have responded to the Treasury and have almost completely thrown in the towel. Their letter. https://www.abi.org.uk/globalassets/files/subject/public/coronavirus/john-glen-mp-hmt-25-sept2020-final-003.pdf?fbclid=IwAR0PZCLFGlTnJacHVnvbqBJP0eDnaAnkBYVAwIv0znC9WVeCsfMkM3G3CWU

In it the following Insurance Companies say they will no longer be deducting Government Grants from insurance pay-outs:

Aviva, Zurich, RSA, Allianz, Hiscox, Axa, Direct Line Group, Covea, Ageas, QBE, Ecclesiastical and Axa XL.

The Treasury have written to the insurers saying that further measures will be taken if they don’t stop the practice. The combination of the above will see an end to this dreadful practice. Thousands of you will benefit from this. This should be the final straw for the insurers.


Q1. What do you do now if you have had a successful insurance claim and had a Government Grant deducted and your insurers name is on the green list above?

A1. Contact the insurers immediately, quoting from the above letters, and demand your money back.

Q2. What if you have not made a claim from one of the insurers listed in green above as you were told they would deduct the Grant?

A2. Contact the insurers immediately, quoting from the above letters, and demand your money back.

Q3. What do you do if your insurers name is not on the list (the biggest name affecting readers of this newsletter will be the NFU) and they have either deducted or threatened to deduct Grants from claims?

A3. Write to them, quoting the letters above and demanding to know the reasons that they continue to carry on with this despicable practice. The FCA has made it clear, the Treasury has made it clear and the ABI have rolled over to stop this practice.

Armed with the insurance company reponses we can have a co-ordinated response to Treasury and the FCA reporting which insurers and on what basis they are still taking the Grants. We can win this one, so please do this, and copy responses from insurers to chair@pascuk.co.uk.

A further PASC UK campaign is being considered to make each of these Insurers contact every policyholder that they have deducted a Government Grant from a pay-out and arrange for its return, and for the insurers to contact all policyholders that have not claimed, probably as they thought the Grant would be deducted, to tell them to claim and there will be no Grant deduction.

This is a major victory for us all and a large number of you will be better off to tune of thousands of pounds as a result of the #justpayit campaign.

Read the PASC newsletter: Cottagessure 4th October 2020 Update

Thanks to PASC UK for their dedication and hard work on this.

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