Such difficulties may, perhaps in most cases, render it impossible or impractical for policyholders to discharge their initial burden of proving their loss. it also seems Allay have lost their Managing Director, Steven Bell[1] w lockdowns—complex implications for coronavirus (COVID-19) business interruption insurance cover. Allay claims has won 2 cases for me… Allay claims has won 2 cases for me which i am grateful. Allay handled three claims for me. FCA authorised firm details. If a significant number of such claims are made, the courts may also face resourcing challenges as they too begin to deal with the backlog of certain types of cases (such as possession and eviction hearings) which have been paused as a result of the pandemic. The scammers may claim to be from the FCA, Claims Management Regulator or Ministry of Justice, and sometimes send fake documents or letters that appear to be from these organisations. That is not to say that insurers were remiss for not having foreseen the construction issues to which the parties were joined in the test case—the insurance industry has a long history of responding to crises by adapting policy wordings to cater for unprecedented developments. Colin Edelman QC, for the FCA, vividly described the rapid emergence of the nationwide pandemic and showed the judges a map of the UK showing clusters of coronavirus outbreaks emerging at the same time across virtually all of England. In a sense, the approaches of both sides beg the question of what the relevant insured perils are and indeed it may be instructive to ask oneself that question when considering a particular BI policy. It is on this legal basis that the FCA submitted that policyholders’ BI losses were proximately caused either by a single peril (being the national coronavirus outbreak), or a multitude of concurrent perils of approximately. The scheme is now winding down and HMRC has indicated that it will now start taking a closer look at certain ‘high risk’ cases where payments may have been made in error and/or fraudulent applications may have been made (such cases may, HMRC states, amount to £3.5bn). Some say that insurers are using the public purse to reduce indemnities paid under policies that do respond to claims relating to coronavirus. Nevertheless, if the test case results in policyholders being unable to recover simply because of the practical evidential difficulty of distinguishing loss caused by A from that caused by B, insurers stand to make what might be regarded as a windfall saving at the expense of policyholders. Allay Claims said: “We do have the right to charge for work done, but only after a 14-day cooling off period. I did have to wait a considerable time to get my cheque from my bank though and Allay were phoning me daily for their commission which did become onerous. The present impasse has, however, also been frustrating for brokers and insurers, who have been widely and often unfairly maligned in the mainstream press and who have had to deal with high volumes of distressed customers in circumstances where, in truth, there was little that they could do to assist pending legal clarity from the courts. The FCA submitted that Orient Express Hotels, which insurers rely on in support of the ‘but for’ test, was wrongly decided because the tribunal had incorrectly identified ‘Damage’ (as defined) as the relevant peril, not hurricane, and that this error led the tribunal to a misconceived application of the ‘but for’ test. Insurers seldom elicit sympathy, especially when declining claims. This is of course why the FCA and the insurance industry acted swiftly in getting the test case afoot and expediting its progress. Allay Claims Ltd. 1This chapter applies to a firm in relation to regulated claims management activities other than seeking out, referrals and identification of claims or potential claims. The ‘but for’ counterfactual analysis would simply remove the kitchen fire to assess what the policyholder’s BI loss was. Both sides also provided vivid analogies to illustrate the logic of their competing cases on causation and, in so doing, their competing analyses of the insured perils under the relevant policies. Policyholders with BI insurance without ‘non-damage’ extensions may, in particular, have taken false hope from the government’s assurances. Updated reveiw Updated reveiw . The focus has to some extent shifted to the question of how the government, businesses and insurers can be better prepared for the next pandemic (having considered it unlikely or not even having contemplated at all that a pandemic would occur most people now believe that more will follow). The third claim was rejected, which was unfortunate but also the smallest in monetary terms so I was not too disappointed. Company reg. Would you like to receive more, or just leave us some feedback and suggestions? All rights reserved. Of particular interest would be guidance on how to discern the insured peril when construing a complex insuring clause. Prior to the commencement of the FCA test case, the Hiscox Action Group (HAG), which comprises around. Allay Claims Ltd. is authorised and regulated by the Financial Conduct Authority in respect of regulated claims management activity. 400 Hiscox policyholders, embarked on an expedited arbitration process, seeking indemnities for BI claims relating to coronavirus. Accordingly, the FCA’s case is that policyholders’ losses were proximately caused either by a single insured peril (being the national coronavirus outbreak resulting in closures), or a multitude of concurrent causes of approximately equally effective causes, some insured and some not, resulting in government measures (ie the aggregate of all known and presumed coronavirus infections in the country). On this view, the further requirements of the BI insuring clauses, such as a requirement for there to have been an outbreak within 25 miles of the premises, are not part of the insured peril but merely pre-requisites for cover. The FCA, on the other hand, argued that for the purposes of insurance, it is sufficient that a loss was proximately caused by an insured peril so long as it was not also caused by an excluded peril. The legal uncertainty had to be resolved urgently, for the sake of policyholders and to preserve the reputation of the insurance industry. For many, who have made complaints to the FOS or who have, or are considering litigating or arbitrating, the decision in the FCA test case will not be the final word on the subject. Registered Office: Studio 20, The Kiln, Hoults Yard, Walker Road, Newcastle upon Tyne, NE6 2HL Tel: 0191 462 0000. This may produce situations where a policyholder’s coronavirus loss probably was caused by both A and B but it is unable to recover anything because it cannot ascertain what part of its loss was caused by B rather than A (or the other way around, depending on the ‘pipework’ in the insuring clause of the relevant policy). The Financial Conduct Authority (FCA) has set 29 August 2019 as the final deadline for consumers to make PPI complaints. FRN: 838865. This FCA authorised firm that fraudsters are claiming to work for has no association with the ‘clone firm’. Over the last few weeks, Twitter has been awash with angry consumers asking Allay to stop sending nuisance, and often incorrect text messages to their phones:- Their sister company, Real Time Claims is no longer authorised by the FCA:- Furthermore. Having waited for the first instance decision, it would seem unlikely that the FOS would resume its assessment of complaints in circumstances where any central issues that would feature in its decision-making process were the subject of an appeal. Other issues, such as the imposition of local lockdowns, complicate the landscape still further. We now regulate claims management companies in England, Wales and Scotland. no: 6836398 | VAT no: 221 656 917. Complaints data published by FOS revealed that Allay was the most complained about CMC in the July - December 2019 quarter, yet Allay Claims (and its 27 trading names) continued to apply to the FCA for full authorisation and … In reality there were few, if any, conversations of this nature because nobody was very concerned about the possibility of an outbreak of this scale. Company reg. The challenge of a new regulator was perhaps too much for some as 253 CMC’s chose not to re-register. As the arbitration commenced by the HAG demonstrates, the FCA test case does not preclude policyholders from pursuing a claim independently. They kept me informed about the process spasmodically and then suddenly I got an offer which astounded me as my PPI was over 20 years old. The impact that the decision will have. By reference to contemporaneous Scientific Advisory Group for Emergencies minutes, he argued that nationwide business closures, lockdown and social distancing were imposed by the government in response to a single cause, being the nationwide coronavirus outbreak, or, alternatively, that all of the outbreaks comprising the nationwide outbreak comprise a multitude of concurrent causes of the same, or similar efficacy. Allay were perfect for my claim, it was almost handled completely silently in the background apart from one request for a little further information to help progress. Litigation on this issue will be likely to follow, with HMRC seeking to claw back payments that should not have been made. There has been some criticism in the press about the categorisation of furlough payments as a ‘saving’ to be deducted from any indemnity paid as part of the loss adjusting process pursuant to the terms and conditions of BI policies. In April, the Financial Conduct Authority (FCA) began regulating PPI claims companies. Had such a conversation arisen, however, is it more likely that the broker would have explained that the insurance was against outbreak or closure, subject to further requirements such as proximity of the virus? Further still, an international effort might be required; after all pandemics do not stop at borders and cannot be eradicated without worldwide effort. ; 2 of which were successful and for which they have been duly paid. This is not a new idea: Pool Re was set up in 1993 and provides insurance backed by government, for losses relating to / arising from acts of terrorism. This result would do little to allay policyholders’ perception that insurers are trying to have it both ways when denying claims on the grounds that the loss would have happened anyway, whether because of mandated closures or because of the coronavirus outbreak, depending on the insuring clause in the relevant policy. How long however will this moratorium last? [1] Customers of the CMC have referred to “threatening texts and emails” which threaten court action if fe Arnold Schwarzenegger in the FCA's promotional campaign on PPI; the deadline for claims is August 29. As the PPI claims deadline loomed, the compensation industry was just getting started. Fewer, however, consider the implications of making ex gratia payments for other stakeholders, including shareholders and other policyholders. It is hoped that the widely anticipated decision in the FCA test case will provide some clarity to policyholders and insurers as to the extent to which certain types of non-damage BI policies will respond to the losses caused by the closure of businesses to tackle the spread of coronavirus. He said: “This decision is great news for consumers and we hope that this is the first step towards an acceptance that it is entirely unacceptable to put an end date on PPI claims. Allay Claims Ltd. is authorised and regulated by the Financial Conduct Authority in respect of regulated claims management activity. AVOID them like the plague. They may also claim to work for an authorised claims company and use the name or other details of one, to make their approach seem genuine. Simplicity has its attractions, but it should never be a substitute to giving effect to what the parties actually agreed. In March 2020 the government launched the Coronavirus Job Retention Scheme with the aim of saving jobs that might otherwise have been made redundant as a result of the lockdown and social distancing measures introduced to reduce the spread of the virus. Will the FOS resume its assessment of BI related complaints when the first instance decision in the FCA test case is published or will it wait until the case has run its course, including any and all appeals that may be pursued? While the result of the FCA test case is awaited, complaints that have been made by policyholders to the FOS regarding BI policies are being held in abeyance so as to ensure that decisions are consistent and are not at odds with judicial authority. Both sides averred that their respective positions proceed from the proper construction of the relevant policies, but they diverged significantly regarding the appropriate legal test for causation. The spotlight will be on the FOS and its handling of complaints when the first instance decision in the FCA test case is published. The resulting impasse, pending judicial clarity, is frustrating, but in the long run it is far preferable to forcing insurers to pay ex gratia claims by means of political pressure or, worse, retroactive legislation. The FCA cited the Silver Cloud as authority, in which case the insured loss was found to have been caused equally by advice to US travellers regarding the dangers of cruise holidays in the wake of the 2001 terrorist attacks on the United States (an insured peril), and also by the fact of the attack itself causing worried US citizens to avoid going on cruises (not insured against, but not excluded either). Claims could therefore make their way into county Courts and High Courts up and down the country. Insurance & Reinsurance analysis: The High Court’s decision in the Financial Conduct Authority’s (FCA) coronavirus (COVID-19) business interruption (BI) test case will be published on 15 September 2020. It is, however, better in the long run for claims to be paid in accordance with the law and the terms on which policyholders contracted. 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