Minister for Finance Paschal Donohoe will meet insurers this week amid claims that some are relying on small print to avoid paying out on claims for loss of income resulting from the Covid-19 shutdown.
Insurers last week agreed that Government advice to close a business to combat the spread of coronavirus would be treated as a direction to close, potentially opening the door to claims for loss of income.
Lobby group Insurance Ireland has confirmed that it will meet Mr Donohoe this week to discuss underwriters' response to the crisis.
Mr Donohoe said last week that insurers’ approach to Covid-19 had not been “sufficiently consistent” even though some companies had responded to a Government call to take a more customer-focused approach to the pandemic.
The Minister added that he intended raising the issue of business interruption cover with Insurance Ireland this week, along with other concerns.
Insurance Ireland said that it understood the question of business interruption cover has caused many organisations concern.
The lobby group pointed out that most standard policies would not cover payouts for a pandemic such as Covid-19, but added that insurers would adjudicate claims fairly and consistently and in line with policies’ terms and conditions.
Insurance Ireland added that most policies made it clear what was covered and what was not, but said that where there was a doubt insurers would give the benefit of this to the customer.
“Insurers agree that the Government advice to close a business in the context of Covid-19 is the same as a direction in this instance, and will be recognised as such,” the organisation said. “It is important to note, however, that each policy is different, and there may well be other factors which lead to the adjudication of whether a claim is valid or not.”
Premiums
Insurers have agreed to cut premiums to reflect businesses’ reduced risks during the lockdown.
They are allowing businesses up to 28 days to pay after their policies come up for renewal. Insurers will also maintain cover for business premises left unoccupied as a result of the shutdown provided they are properly supervised and secured.
Gerry Hassett, Insurance Ireland's interim chief executive, claimed member companies were committed to doing their best for customers.
He added that insurers were committed to working with the Government as part of its response to the “unprecedented crisis”.
"Insurers have agreed important pledges on home, motor and business insurance to help and support customers," said Mr Hasset.
