Central Bank governor Gabriel Makhlouf signalled on Tuesday the regulator is considering taking legal action to resolve standoffs between insurers and businesses over whether losses resulting from Covid-19 should be covered by insurance companies.
The regulator is “taking advice” on whether it should follow the lead of the UK Financial Conduct Authority (FCA), which launched at test case last month against eight insurers who have denied business interruption claims and where there is a dispute over the meaning of wording in policy documents.
FBD Holdings’ pubs policy, which covers losses where a premises is closed under the orders of a local or government authority in the event of an infectious disease outbreak within 25 miles, is currently at the centre of litigation in the Republic.
An action taken in May by the Lemon & Duke pub in Dublin is among four test cases against FBD to be heard in October.
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