Insurance - MS Amlin and Towergate

[TwoHooter]

In one of my other lives I built and ran a steam railway as a visitor attraction. I'm retired now but still follow the heritage railway scene. The following news item is from the Managing Director of the Bure Valley Railway and is relevant to anyone who relies on MS Amlin as insurers, or Towergate as brokers.

'I felt it was an appropriate point to provide an update on our insurance claim for business interruption. Our claim was rejected in April 2020. We contested the basis of that rejection and asserted that our claim stood. The FCA took the matter to the High Court where the basis upon which our insurers rejected our claim was thrown out. The insurers appealed and the case went directly to the Supreme Court, the highest court in the country. The insurers lost again. Despite this and the fact that we are now three weeks on from when the Supreme Court ruling was handed down, our insurers MS Amlin are still refusing to accept liability. They have appointed loss adjusters in respect of our claim, but without accepting liability. Without accepting liability our brokers, Towergate are unwilling to invoke the policy which provides loss adjusters to act for us. We are therefore having to look at engaging a specialist claims firm in London to act for us. It seems insurers can ignore the highest court in the land and get away with it, because the claimants do not have the financial resources to challenge them. '

 

[rafiki_]

Mike, you could do with JFM's assistance with this.

 

[TwoHooter]

Hi Paul - Sadly JFM is no longer on the forum, but in any event I don't need any help. I'm not currently insured with Amlin or Towergate. I posted this because I am disgusted by the way these companies are handling the business interruption claims and I think everyone should be aware of this part of their track record - and they are active in the leisure marine market.

 

[Solent Sailor]

Would that it were ever different. Many times I have had to advise clients not to litigate because whilst their case may be robust, their ability or desire to take it as far as it may need to go means that the fight isn't worth getting into in the first place (or, rather, we have to find an alternative way of handling it).

 

[TwoHooter]

Would that it were ever different. Many times I have had to advise clients to litigate because whilst their case may be robust, their ability or desire to take it as far as it may need to go means that the fight isn't worth getting into in the first place (or, rather, we have to find an alternative way of handling it).

And nobody ever gets all their litigation costs back.

 

[Hooligan]

Tough to comment against what looks like a very bad situation that the insured above faces. I had a very very large claim as a result of a problem that was not my fault. The insurer was Amlin. I could not speak more highly of how they handled the claim and paid out. Again, not to put good light on an awful situation, but just my experience. I also think that at least in marine, Amlin have probably the best policy wording around.

 

[Momac]

. It seems insurers can ignore the highest court in the land and get away with it, because the claimants do not have the financial resources to challenge them. '

I have no doubt you are one of many.

Are Amlin likely to go bust? I reason I ask is my boat insurance renewal is coming up for renewal and Haven KJ (Amlin) is a contender.

 

[ashtead]

I think the issue of the FCA action is a slight red herring here. That considered if the policy terms responded to the type of claims . Now insurers are considering individual claims by appointing loss adjusters as they would normally do for commercial claims following the court finding as to coverage for the event. That’s a brief summary but if anyone does have further interest in topic websites of leading firms like Herbert smith who acted for the FCA give more info. If you are seeking specific advice from a pro insured lawyer Fenchurch Law acts for insureds so will more than happy to take your instructions I’m sure. Clearly coverrage for BI claims like this will lead to increased premiums for all particularly if some insurers pull out of market.