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Court win for Moray businesses refused insurance claims during lockdown


By Lorna Thompson

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BUSINESSES in Moray that were refused insurance claims for losses during the Covid-19 lockdown are now in line for payouts after a Supreme Court ruling in their favour.

The UK's highest court has substantially allowed the appeal by the Financial Conduct Authority (FCA) on behalf of thousands of policy-holders across the country.

This completes the legal process following an earlier High Court ruling in September. It means those affected will now be entitled to have their claims for coronavirus-related business interruption losses paid.

Several local companies had contacted Scottish Conservative MP for Moray Douglas Ross looking for help on the issue.

Mr Ross said businesses should never have had to face the extra stress of battling disputed claims in what was already a very difficult year.

Businesses will now be entitled to have their claims for coronavirus-related business interruption losses paid after a Supreme Court ruling.
Businesses will now be entitled to have their claims for coronavirus-related business interruption losses paid after a Supreme Court ruling.

He said: "This is very good news and will mean that companies here in Moray that were affected by this can now receive payouts.

"The past year has been incredibly difficult for many local firms, particularly during the national lockdown from last March and the more recent imposition of restrictions since Boxing Day.

"Doors were shut and businesses were prevented from operating through no fault of their own.

"It was completely unfair that insurance companies then failed to pay out.

"I am pleased for all of those businesses that fought against this.

"I hope all the businesses here in Moray can now receive the money they are entitled to."

Sheldon Mills, executive director, consumers and competition at the FCA, said: "Coronavirus is causing substantial loss and distress to businesses and many are under immense financial strain to stay afloat.

"Tens of thousands of small firms and potentially hundreds of thousands of jobs are relying on this."


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