The Financial Sector Conduct Authority (FSCA) recently published a Press Release providing a brief update on the progress regarding the process of obtaining legal certainty on Contingent Business Interruption (CBI) Cover and related issues.
The FSCA states that the process to obtain legal certainty through the courts regarding CBI cover may be lengthy and is currently ongoing. The FSCA has engaged relevant stakeholders to establish the most efficient way of approaching the courts in this regard. Bearing this lengthy process in mind, the FSCA advises, despite previously communicating that insurers will waive time bar periods, that the waiver is not possible for all insurers due to reinsurance contracts. Accordingly, the FSCA advises policyholders to check the time barring clauses in their CBI policies with their brokers and legal representatives and establish from their insurers the terms under which, if any, indulgence may be granted on the time barring clauses.
While legal certainty is being sought, the FSCA with the Prudential Authority (PA), reached an understanding with some non-life insurers that provide CBI cover, that they would provide interim relief to their policyholders. The FSCA is pleased to report that a good number of non-life insurers have confirmed that they will make interim payments to assist struggling policyholders. These non-life insurers have also communicated the exact details of the interim relief measures to their brokers and policyholders.