# High Court ruling on covid business Insurance



## odyssey06 (5 Feb 2021)

Seems like a significant ruling.

THE HIGH COURT has ruled that four pub owners are entitled to be compensated by insurer FBD for the disruption their businesses suffered due to the Covid-19 pandemic.
In a landmark decision, the outcome of which affects claims made by some 1,000 Irish pubs and restaurants, Mr Justice Denis McDonald found that a policy sold by FBD covered losses the pubs sustained by having to close due to the global health emergency.









						'Vindicated': Pub owners react after landmark court ruling orders FBD Insurance to pay out over Covid losses
					

The outcome of the case affects claims made by some 1,000 Irish pubs and restaurants against insurers.




					www.thejournal.ie


----------



## Purple (5 Feb 2021)

We can all look forward to higher premiums next year.


----------



## Sunny (5 Feb 2021)

Purple said:


> We can all look forward to higher premiums next year.



To be fair, looking at it from a distance I thought the Insurance company were acting like a typical Insurance Company. Oh we will cover you if are closed if there is a case within 25km but we won't cover you if there are cases within 25km and outside the 25km....

To me it sounds like the Insurance company didn't identify and manage the risks and were looking for any get out clause they could find. I am glad the pubs won. 

Of course, as you say all businesses will now pay for it. Imagine if we had a regulator that actually cared about consumers....


----------



## Purple (5 Feb 2021)

I agree Sunny


----------



## Brendan Burgess (11 Feb 2021)

Sunny said:


> Imagine if we had a regulator that actually cared about consumers....



Imagine if we had a regulator who made decisions on the interpretation of commercial contracts! 

It is far better that the interpretation is left to the Ombudsman and to the courts. 

And, as in the case of the AIB Prevailing Rate issue or the FBD issue, when the Ombudsman or the Court rules, the Central Bank makes sure that it is applied to every customers in the same cohort.

Brendan


----------



## Brendan Burgess (11 Feb 2021)

It also appears that the Central Bank told FBD in advance that they were to cover the pubs'  legal costs even if FBD won.









						Row brewing over legal costs from FBD pub insurance case
					

It is understood FBD is willing to pay only part of the pubs’ legal costs, despite having been mandated by the Central Bank to cover all reasonable costs no matter what the outcome of the case




					www.irishexaminer.com
				




_It is understood FBD is willing to pay only part of the pubs’ legal costs, despite having been mandated by the Central Bank to cover all reasonable costs no matter what the outcome of the case._

That seems extraordinary to me.

I asked AIB to cover the costs of a legal challenge in the Prevailing Rate case and they said that it would not be allowed under the doctrine of _Champerty and maintenance._


----------

