Seinfeld The Letter

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The Financial Conduct Authority insurance ordered to pay claims to companies "as soon as possible," or explain, the watchdog.

The FCA has told the insurer to pay when there are reasonable reasons for you to be a part of a claim, but not the full claim, you need to make a provisional payment.

If not, tell the insurer must, the FCA, as they reached the decision and how it is "a fair result for the customer".

The movement is aimed at relieving the pressure on the company during the Covid-19 lockdown.

"A key objective of the FCA is to ensure that the financial burdens of the insured will not be exacerbated by the slow payment, rather, such claims should be made as soon as possible," the FCA's interim chief executive, Christopher Woolard, to be paid, the insurer Said in a letter.

"This is consistent with the broader objective of The Authorities to support businesses and consumers in the current crisis. "

The Letter was addressed to the insurers in respect of claims from small and medium-sized enterprises business interruption cover, and not on individuals' policy.

A spokesman for The Association of British insurers Said : "insurers recognise this is a worrying time for all of the company and ABI members are committed for the swift payment of legitimate claims and interim payments to their customers. "

Mr Woolard admitted that the following conversations with insurers, it was clear that the majority of business interruption policies held by small and medium-sized enterprises, the basic cover that does not contain pandemics and, therefore, the insurer had no payment obligation in respect of Covid-19.

"this may be disappointing for the policyholder, we see no reason to intervene in such cases," He Said .

Simon Ager

Some companies have warned they are in danger of collapse by the insurer otherwise, to cover losses as a result of the coronavirus lockdown.

the business man, Simon Ager , the running of The Pinnacle Climbing centre in Northampton is one of the number of entrepreneurs who have Said that they could not pay legal action against the insurer Hiscox, which is Said , it, and business interruption claims arising from the outbreak.

Mr Ager, the policy covers the rock climbing centre for losses of up to £ 100,000 to close if it is forced, under certain circumstances, although he says that the lockdown is likely to cost him More Than that.

Hiscox policy documents, it means potential financial losses for companies not able to use their premises, the occurrence of human infectious diseases, or people contagious following "the outbreak of the disease which must be notified to The Local authority".

But Hiscox, the insurance industry says have enough money for all the losses incurred as a result of the closure.

"business interruption policies in the industry as a whole were never meant to cover pandemic risks", " a spokeswoman Said , noting that the insurer's lawyers believe that the pandemic is covered by its business interruption insurance policies.

Instead, the insurer argued that the policy was intended to cover incidents that occur only within a mile of a business - not to the whole Country or outbreaks of Legionnaire's disease on the premises.

The FCA Said that smaller companies are regarded as companies with a turnover of less than £6. 5 m and less than 50 employees may take complaints to the Financial Ombudsman.

Mr Woolard added that The City watchdog had identified a Small Business unit, responsible for the "gathering of information about The Treatment of small businesses by Financial Services companies in The Crisis and ensure a coordinated response to the FCA problems."

financial conduct authority (fca), coronavirus pandemic, companies, insurance

Source of news: bbc.com