Context
The FCA has published further updates to its Business Interruption Insurance test case page.
It has published the final transcript of the 2 October hearing and the 2 October order, which includes the granting of certificates for a leapfrog appeal to the Supreme Court, the High Court declarations and the appeal applications to the Supreme Court.
Key points to note
Publication of High Court declarations
- The FCA has published the High Court declarations made in the test case. These are the culmination of the test case judgment and declare how, and to what extent, the policies in the representative sample respond to business interruption losses arising from the COVID-19 pandemic.
- The FCA expects to publish shortly a guide to the declarations for policyholders. Policyholders are encouraged to speak to their insurance intermediaries and/or their advisers in the first instance for questions arising from the declarations.
- Policyholders should note that the FCA, six Defendant insurers and the Hiscox Action Group have applied to appeal the High Court judgment and declarations (see below).
Publication of appeal applications to Supreme Court
- Following the High Court granting certificates for a ‘leapfrog’ appeal to the Supreme Court on 2nd October, the FCA and others are entitled to apply to the Supreme Court for permission to appeal.
- The FCA continues to hold discussions with insurers and action groups to find a solution which resolves the outstanding issues as soon as possible to enable pay-outs on eligible claims. In parallel with these discussions, the FCA, six Defendant insurers and the Hiscox Action Group have applied for permission to appeal to the Supreme Court.
- The FCA believes that this ‘leapfrog’ appeal is the fastest way to get legal clarity as quickly as possible for all parties if it is not possible to resolve the outstanding issues in the coming weeks.
- The FCA has published its application to appeal the Supreme Court: FCA’s application to appeal to the Supreme Court.
- It has also published applications to appeal to the Supreme Court from the six Appellant Defendants and the Hiscox Action Group: