Supreme Court of the United Kingdom To Deliver Final Judgment in COVID-19 Insurance Test Case

Must Read

Delhi High Court Disposes Ashok Arora’s Appeal Against Suspension From Supreme Court Bar Association

In the present Petition, Senior Advocate Ashok Arora challenged an Order passed by a Single Judge bench. The Order...

Allahabad High Court Dismisses Application To Quash Prima Facie Allegations of Criminal Intimidation and Outraging Modesty

Allahabad High Court, on 17th November 2020, dismissed an application filed under Section 482 of Cr.P.C. and refused to...

Delhi High Court Prohibits Gathering in Public Places To Celebrate Chhat Puja

The Order had come in a Writ Petition moved by Shri Durga Jan Seva Trust. The Petition sought to...

Bombay High Court Directs State To Pass Tribe Claim Within Two Weeks, Refuses To Intervene on Merits of Claim Itself

The Division Bench of Bombay High Court consisting of Justice S.S. Shinde and Madhav Jayajirao Jamdar passed an order...

Kerala High Court Dismisses Petition by Allocating Respondent To Vacancy in IFS Cadre

On 16th November 2020, the Division Bench at Kerala High Court, consisting of Honourable Justice A.M. Shaffique and Honourable...

AP High Court: If an Auction Is Conducted by a Cooperative Bank, the Property Ceases to be Property of the State

A single-judge bench consisting of honourable justice Ninala Jayasurya gave orders on the writ petition filed by the petitioner....
Moshiuzzaman
Moshiuzzaman holds a 2:1 LL.B degree from BPP University (UK). He is currently pursuing the CFA chartership and working as an independent legal researcher at the American Society of International Law (ASIL)

Follow us

The Supreme Court of the United Kingdom began its’ four-day hearing in the matter of Financial Conduct Authority v Arch Insurance [2020]. The appeal concerned the construction of certain provisions in insurance policies written by the Appellant Insurers relating to the insurance policy payouts amidst the COVID-19 pandemic.

Background

In June 2020, the Financial Conduct Authority (FCA), the regulator of the respondent insurers, brought a test case to determine issues of principle concerning policy coverage under various specimen wordings underwritten by the defendants in respect of claims by policyholders to be indemnified for business interruption losses arising in the context of the COVID-19 pandemic and the advice of and restrictions imposed by the UK Government in consequence. 

England & Wales High Court Decision

Sitting in the High Court of the Queen’s Bench Division, Butcher J and Flaux LJ, concurrently held that out of the 21 insurance policy types at dispute, most (13), but not all (08), should pay out offerings to the policyholders of small and medium-sized enterprises (SMEs). The Court held that eleven of these disputed insurance policies should lead to payouts. Notably, the Court also discharged claims brought against Zurich Insurance Plc and Ecclesiastical Insurance Office Plc.

What Would the Supreme Court Be Looking At?

There are two matters for consideration by the Supreme Court: 

First, matters of construction relating to (i) “Disease Clauses” i.e. those which can be triggered by the occurrence of severe acute respiratory syndrome coronavirus 2 (“Covid 19”), typically within a specified distance of the insured’s premises; (ii), “Prevention of Access Clauses” i.e. those triggered by public authority intervention preventing access to, or use of, premises as a result of Covid-19. Lastly, “Hybrid Clauses” i.e. those clauses which contain wording from both Disease and Prevention of Access Clauses.

The second issue before the Court is in relation to the correctness of the High Court in the application of certain counterfactual scenarios to the operation of the clauses in relevant policies which provided for loss adjustments (the “Trends Clauses”); and its analysis of Orien-Express Hotels Ltd v Assicurazioni Generali S.p. A.

Impact

The issue has implications to more than 370,000 SME(s) and a total potential payout of £1.2 bn. The final judgment of the Supreme Court shall also provide authoritative guidance for other similar policy payout claims across the UK; for instance, the Financial Ombudsman Service and courts in Scotland and Northern Ireland are expected to use the judgment to rule on other similar cases.

The case ID of the Supreme Court case is Financial Conduct Authority (Appellant) v Arch Insurance (UK) Ltd and Others (Respondent) UKSC 2020/0177″.

Click here to read the judgment.


Libertatem.in is now on Telegram. Follow us for regular legal updates and judgment from courts. Follow us on Google News, InstagramLinkedInFacebook & Twitter. You can subscribe to our Weekly Email Updates. You can also contribute stories like this and help us spread awareness for a better society. Submit Your Post Now.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Madras HC Reaffirms Trial Court’s Decree in Case of Thimmaraya & Ors. V. Gowrammal

A Civil Revision Petition was filed by three petitioners against the dismissal of their application on the file of the Sub-Judge, Hosur. The case...

Delhi High Court Disposes Ashok Arora’s Appeal Against Suspension From Supreme Court Bar Association

In the present Petition, Senior Advocate Ashok Arora challenged an Order passed by a Single Judge bench. The Order held that Mr Arora had...

Allahabad High Court Dismisses Application To Quash Prima Facie Allegations of Criminal Intimidation and Outraging Modesty

Allahabad High Court, on 17th November 2020, dismissed an application filed under Section 482 of Cr.P.C. and refused to quash the charge sheet (dated...

Delhi High Court Prohibits Gathering in Public Places To Celebrate Chhat Puja

The Order had come in a Writ Petition moved by Shri Durga Jan Seva Trust. The Petition sought to quash and set aside an...

Bombay High Court Directs State To Pass Tribe Claim Within Two Weeks, Refuses To Intervene on Merits of Claim Itself

The Division Bench of Bombay High Court consisting of Justice S.S. Shinde and Madhav Jayajirao Jamdar passed an order on 17th November 2020 in...

Kerala High Court Dismisses Petition by Allocating Respondent To Vacancy in IFS Cadre

On 16th November 2020, the Division Bench at Kerala High Court, consisting of Honourable Justice A.M. Shaffique and Honourable Justice Gopinath. P heard the...

AP High Court: If an Auction Is Conducted by a Cooperative Bank, the Property Ceases to be Property of the State

A single-judge bench consisting of honourable justice Ninala Jayasurya gave orders on the writ petition filed by the petitioner. The petition challenges the action...

Madras HC Rules in Favour of the Authorities in FMGE Examination, Finds Writ Petitions Against the Exam Void of Merit

Three aspirants of Foreign Medical Examinations moved to the High Court by filing a Writ Petition under Article 226 of the Indian Constitution. They...

Hong Kong High Court Rules for Independent Mechanisms To Be Set up To Deal With Complaints Against Police Officers

The present suit was brought by a journalist association because of the police brutality that the protestors faced in the protests against the China...

Madras High Court Maintains That Government Policy Is To Prioritize Own State’s Candidates and Sets Aside Nativity Certificate Rejection Order

Varsha Totagi, a NEET aspirant filed a Writ Petition under Article 226 of the Indian Constitution. She had been denied Nativity Certificate without which...

More Articles Like This

- Advertisement -