High Court Judgment on Business Interruption Test Case must be followed by prompt payments to other affected businesses - Pearse Doherty TD
Sinn Féin spokesperson on Finance Pearse Doherty TD has welcomed today’s judgment by the High Court which has ruled that FBD Insurance must cover four pubs for losses suffered as a result of pandemic public health restrictions.
Deputy Doherty congratulated the publicans for their tenacity over the past 18 months which will see a wider benefit to hundreds of small businesses across the State.
Speaking today, Teachta Doherty said:
“Today’s High Court ruling is a victory not only for the four pubs that took this case against FBD Insurance, but for struggling businesses throughout the State who hold similar policies with FBD Insurance.
“Today’s judgments found that these small businesses were entitled to cover for business interruption as a result of pandemic public health restrictions, and that FBD must cover their losses.
“This was a test case that would not have been taken without the tenacity of the publicans who refused to bow down or give up despite financial pressure and stress that this process has caused.
“Since the beginning of the pandemic, FBD have claimed to engage with policyholders openly, swiftly and in good faith.
“The past eighteen months have told a different story.
“This result and the actions of the publicans involved will have a wider benefit for hundreds more who held similar policies with FBD.
“These policyholders must now be compensated by FBD for their losses without delay.
“The Central Bank must now kick into gear and step up supervision under their Business Interruption Supervisory Framework to ensure this happens.“There are outstanding issues and lessons to be learned.
“The deduction of State supports from insurance payouts remains unresolved with the Minister for Finance refusing to take action.
“The Central Bank should spell out what powers it needs through legislation to allow for test cases to be brought by the regulator on behalf of consumers as was done by the Financial Conduct Authority in Britain.
“Today is a good day for the publicans involved and those hundreds of businesses that should now benefit.”