Successfully negotiating claims since 1867
The Enterprise Act 2016 had provisions, later exported into the Insurance Act 2015, for insurers to be liable for damages resulting from late payment of a claim.
Our client is a consumer with an overseas holiday home seriously damaged by an insured event. Delays on insurers’ part were egregious, to the extent that during the seriously extended course of the claim both Lloyd’s Complaints and FOS made high-figure maladministration awards for incompetent handling as well as for interest.
The policy had an alternative accommodation cover with a twelve-month limit. The poor handling of the claim meant that our client lost the use of the home for more than one summer, with consequent expense for periods beyond the first year. The extra costs were well into five digits.
We lodged a claim for the resultant damages adding interest and our fees for preparing and presenting the statutory claim. Strictly speaking, our client’s policy wasn’t included in the new provision, having renewed before the sectional commencement date specified in the Act. FOS, however, indicated informally that it was prepared as a general principle it applies to new legislation to give it force on a six-year retrospective basis.
We lodged the claim directly with the Lloyd’s syndicate owner, bypassing the lower layers – retailer, MGAs, syndicate management – that had so obstructed the original claim. To its credit, the owner engaged with us in days and settlement with only minor adjustments was agreed very quickly.
It works, and we’re ready to take other such claims on a contingency basis.