Policyholders and their representatives have called for insurers to “take responsibility” and “immediately start paying claims” in the wake of a bittersweet
Providers pledge to review claims and contact customers after the Supreme Court sided with the FCA and policyholders in the final verdict over payment of BI
Insurance Age
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The court also concluded that the Orient Express case, which insurers relied on during the hearing, was wrongly decided and should be overruled.
The Supreme Court has ruled largely on the side of the Financial Conduct Authority (FCA) and policyholders, according to the judgment in the business interruption test case appeal published today (15 January).
Both policyholders and insurers lodged appeals on certain aspects of the original judgment.
The Supreme Court said in the judgment: “Although we have accepted some of the insurers’ arguments on their appeals, in no case has that affected the outcome of the appeal. It follows that the insurers’ appeals are dismissed.”
Insurance Post
Insurance Post staff
Free content: Access market and insurance reactions to the Supreme Court ruling that dismissed appeals against a High Court judgment on insurers paying out in Covid-related disruption on business interruption insurance policies and overturned the Orient Express ruling.
The Supreme Court dismissed insurers’ appeals in the Financial Conduct Authority’s business interruption test case on Friday, bringing to a close a six-month legal battle.
The court also “substantially” allowed the appeal of the FCA, which had been representing the interests of policyholders in the case.
It also overturned the landmark 2010
Orient-Express Hotels v Assicurazioni Generali ruling, concluding that it had been “wrongly decided.” Insurers had argued that the High Court’s judgment undermined the precedent set by the ruling.
The Supreme Court will issue its ruling on Friday morning in the Covid-19 business interruption legal case with up to 370,000 policyholders and their insurers