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UK payments made on 70% of BI policyholder claims

Financial Complaints Authority (FCA) figures show 70% of business interruption policyholders who have had pandemic-related claims accepted following a UK test case have now received at least an interim payment.

The data shows that 42,616 policyholders have had claims accepted and 30,032 have received at least an interim or initial payment as of November 8.

“We remind firms of the need to handle claims promptly and fairly and to provide reasonable guidance to help a policyholder to make a claim,” FCA says.

“Any BI policyholders who believe they may have a claim but have not yet submitted this to their insurer should do so as soon as possible in accordance with the policy document.”

Final settlements for business interruption claims related to the COVID-19 pandemic in the UK have reached £871.6 million ($1.6 billion), the monthly update shows.

The total value of interim/initial payments made in the case of 4403 claims that are yet to be finalised is £312.2 million ($609.4 million).

The Supreme Court handed down its appeal decision on the pandemic-related test case on January 15.