CENTRAL DEVON MP Mel Stride, Chair of the Treasury Select Committee, has urged insurance companies to be fair and transparent in dealing with business interruption claims as a result of the coronavirus epidemic. In an exchange of correspondence with Huw Evans, Director General of the Association of British Insurers (ABI), Mr Stride sought answers on how the insurance sector is responding to coronavirus at a time when many will look to their insurer for both flexibility and assurance.
Mr Stride said:
“The ABI has estimated that its members will pay out £900 million in business interruption claims relating to coronavirus. Yet the Committee continues to receive evidence of the difficulties firms are facing in making a successful claim. UKHospitality told us that 71% of its members have had claims rejected and only 1% have had any success. I understand that many businesses won’t be covered for this unprecedented crisis but it is vital to businesses here in Devon, and across the country, that the insurance sector goes the extra mile in meeting claims wherever possible, for example where there are grey areas within policies.”
