Insurance: Coronavirus:Written question - HL2623

Asked on: 16 March 2020
Treasury
Insurance: Coronavirus
Lords
To ask Her Majesty's Government what plans they have to discuss with the insurance industry the implications of COVID-19 for firms which have taken out pandemic insurance.
A
Answered by: Lord Agnew of Oulton
Answered on: 26 March 2020

The Chancellor has made clear that, for those businesses which have an appropriate policy that covers pandemics, government’s medical advice of 16 March is sufficient to allow businesses to make a claim against their insurance, provided the other terms and conditions in their policy are met.

In addition, the FCA’s rules require insurers to handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim, and appropriate information on its progress; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed.

However, most businesses have not purchased insurance that covers pandemic related losses. As such, any affected businesses should note the government’s full package of support.

The Government is in continual dialogue with the insurance sector about its contribution to handling this unprecedented situation.

Grouped Questions: HL2638

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