Republic of Ireland firm FBD Insurance will be part of a court case to be heard in October after several businesses disputed their claim for business interruption caused by Covid-19. According to The Journal, they all dispute FBD’s refusal to indemnify them, as well as its stance that the policy of insurance does not cover the Covid-19 pandemic. One firm claimed to be losing €30,000 per week since it was forced to close, with another claiming to be losing €56,000. Three firms will be featured in test actions in October, meaning the results of each case will set a precedent for similar cases.
Motor insurance firms in Australia are facing growing pressure to give customers a rebate on their insurance while they’re driving less. According to data from Apple, the number of driver requests on its Maps app dropped by 73% below normal levels during the peak of lockdown in mid-April. Consumer Action Law Centre insurance policy officer Tom Abourizko told The New Daily: “With fewer cars on the road due to Covid-19 restrictions, it’s likely car insurers will get a significant windfall due to fewer car accidents. Insurers generally require consumers to notify them of any relevant change in circumstances, and if that change increases the risk of a claim, it normally results in an increase in premiums.” Seven insurers in the country have taken action to give premium relief to customers using a range of methods.
Reports suggest New York representative Carolyn B. Maloney will hold a press conference this week to introduce a bill that, if approved by congress, would put in place a government backstop for 95% of claims caused by future pandemics. Insurance industry groups the National Association of Mutual Insurance Companies (NAMIC), the American Property Casualty Insurance Association (APCIA), and Independent Insurance Agents and Brokers of America, are disputing the bill. Instead they’re attempting to raise the profile of their own plan, which would see the government take on 100% of the risk and pay out through the existing infrastructure within the Federal Emergency Management Agency (FEMA).